The IRS has announced the following mileage rates, effective January 1, 2015:
- Business mileage will be 57.5 cents per mile, up from the 2014 rate of 56 cents per mile. This rate can be used to reimburse employees for the business use of their personal vehicles, as well as for determining the value of an employee’s personal use of a company car.
- Miles driven for medical or moving purposes will go down to 23 cents per mile. The 2014 rate is 23.5 cents per mile. Employers who reimburse for moving expenses should ensure they change this rate effective January 1, 2015 to avoid having to include the extra half cent in employees’ income and the accompanying withholding and reporting requirements.
- The mileage rate for driving for charitable purposes remains at 14 cents for 2015.
Miles driven in 2014 but not accounted for on an employee’s expense report until 2015 are subject to the 2014 rates.