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December 18, 2023
2023-2087

IRS issues new mileage rates for 2024

Effective January 1, 2024, the business standard mileage rate for use of a car (including vans, pickup trucks and panel trucks) increases from $0.655 to $0.67, and the rate for medical and relocation mileage decreases from $0.22 to $0.21. Mileage related to charity is set by law and remains at $0.14 per mile. (Notice 2024-08; IRS Notice 2023-03.)

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses incurred after December 31, 2017, except for members of the Armed Forces on active duty moving under orders to a permanent change of station.

Luxury vehicle limit for 2024 increases

Pursuant to the vehicle valuation limit that applies to use of the optional fleet-average and vehicle cents-per-mile valuation methods, the maximum fair market value of a vehicle (including trucks and vans) first made available to employees in calendar year 2024 increases from $60,800 to $62,000.

Federal mileage rates

Type of mileage

Effective January 1, 2023

Effective January 1, 2024

Business standard

$0.655

$0.67

Charity

$0.14

$0.14

Relocation and medical

$0.22

$0.21

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

 

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