2013 Standard Mileage Rates Announced by IRS

2013 IRS Mileage Rate Follow Me on Pinterest I have written before about standard mileage rates but today I’d like to give you an update. The IRS has released the new standard mileage rates for 2013 that many companies use to reimburse you for business miles driven on your personal vehicles.

You can also use these rates for deducting business use of your personal vehicle if you run your own business. Remember, despite what many people may think or say, you don’t make money on mileage reimbursement.

2013 IRS Standard Mileage Rate

For 2013, the IRS standard mileage rate is 56.5 cents per mile which is an increase of just one cent over 2012′s 55.5 cents per mile. This isn’t a huge increase but at least they didn’t decrease the rate. If you drive 1,000 miles on business it would amount to an extra $10.00 reimbursement from your employer or deduction on your tax return.

2013 Medical and Moving Mileage Rate

For 2013, the IRS medical and moving mileage rate is 24 cents per mile which, like the IRS standard mileage rate, increased once cent over 2012′s rate which was 23 cents for medical and moving mileage.

2013 Service to a Charitable Organization Mileage Rate

For 2013, the IRS service to a charitable organization mileage rate remained the same as it was in 2012 at 14 cents per mile.

You can read the official IRS notice here.

What do you think about the mileage rates for 2013? Did they increase enough or do you think it was a fair adjustment?

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About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.

Comments

  1. Hmm I don’t drive enough for my business to even notice, but I’ll take an increase!
    Michelle recently posted..Budget BustersMy Profile

  2. I think it’s a fair increase. I’ll take any kind of increase. We have about 2,000 miles to account for this year and am sure we’ll have the same if not more next year, so I’ll happily take what I can get.
    John S @ Frugal Rules recently posted..Frugal Family: How I Sacrifice “Stuff” to Give My Kids Everything They NeedMy Profile

  3. My mileage deduction is insignificant. When I was consulting, this was much more meningful. Is it fair? Yes, because it includes depreciation and maintenance, but it is for the average vehicle which may or may not reflect your car.

  4. I’ve never used the Charitable Organization Mileage Rate deduction. What does that actually cover?
    Brent Pittman recently posted..20 Christmas Gift Ideas for Bloggers and PodcastersMy Profile

    • I think it is mileage to and from a qualified charitable location if you volunteer, but I’m not 100% certain so it’d be best to ask your accountant.

  5. Thanks for the update. An increase is always a good thing, and I hope it is the same for the whole year. In 2011, I have to take one mileage rate for half the year, and another for the latter half. Really annoying for preparing tax returns…

    Luckily I’ve trained most of my client to kep a good mileage log.
    Jacob @ iheartbudgets recently posted..Top Budgeting Tips For The Traveller In YouMy Profile

  6. I wish I could use this for my drive to work! I don’t drive for work outside of that, though, so whether it’s $0.55 or $5.55, it doesn’t really affect me.
    Daniel recently posted..5 Things We Need To Buy, But Hate To Spend Money OnMy Profile

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