IRS Announces Drop in Standard Mileage Rate by 1.50 Cents in 2021

The IRS Standard Mileage Rate and FAVR plan maximum vehicle costs, are published annually in IRS Rev Procedure 2010-51  Notice 2020-2.

2021 IRS STANDARD MILEAGE RATE

Effective January 1 2021, the IRS Standard Mileage Rate for 2021 is down 1.50 cents to 56 cents per mile.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.

The application for the IRS Standard Rate is to reimburse occasional business use.

IRS STANDARD MILEAGE RATE TRENDS

The table below created by Cardata displays the IRS Standard Rate for the past 27 years. During those 27 years, the IRS adjusted the Standard Rate in mid-year only four times, in 1999, 2005, 2008 and in 2011. Mid-term adjustments are a function of dramatic changes in fuel prices, as happened with Hurricane Katrina in 2005.

IRS STANDARD MILEAGE RATE

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Please see official IRS release HERE.

IRS STANDARD MILEAGE RATE

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Click HERE for more details on Cardata, and how to find the best IRS compliant reimbursement plan for your business.

About Cardata: Cardata provides vehicle reimbursement programs for the mobile workforce. Cardata services save money, reduce risk, and remove administration. Cardata programs are compliant with the IRS and the CRA.

MEDIA Contact: Megan Dean
Marketing & Sales Specialist | Cardata
Direct: 303-434-3307 | FAX: 929-235-7525
mdean@cardataconsultants.com
www.cardataconsultants.com

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