The Internal Revenue Service (IRS) has issued the 2020 standard mileage rate used to calculate the costs of operating a personal vehicle for business.
The new rates took effect on Jan. 1, 2020. The updated standard mileage rate for the use of a car (including vans, pickups or panel trucks) is:
- 57.5 cents per mile driven for business use, down one half of a cent from the rate (58 cents) for 2019
- 17 cents per mile driven for moving purposes, down three cents from the rate (20 cents) for 2019
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for moving purposes is based on the variable costs.
The university forms have been updated to reflect the new rates.