The IRS Issues New, Lower Mileage Rates For 2016!
Posted December 29, 2015

Good news! The IRS issued its 2016 standard mileage rates and it has given employers a small bone of good tidings. (Note that a 2017 revision will likely be issued this coming December 2016, and may reverse our current positive downward trend). But, for now, as of January 1, 2016, the standard mileage rates are:

  • 54 cents per mile for business miles driven (down from 57.5 cents last year);
  • 19 cents per mile driven for medical or moving purposes (down from 23 cents last year); or
  • 14 cents per mile driven in service of charitable organizations (same as last year).

Remember that employers are required to reimburse employees for work-related mileage, other than the usual commute to and from work. Employers may choose to pay rates lower than the IRS standard if the chosen rates fully compensate the employee for travel-related costs (including fuel, insurance, repairs, and depreciation). However, payment of the IRS standard rates will be deemed reasonable and sufficient reimbursement as a general rule.

You can find the current rates at: https://www.irs.gov/uac/Newsroom/2016-Standard-Mileage-Rates-for-Business-Medical-and-Moving-Announced.

If you have questions about mileage rates, reimbursement, or any other employment law questions, contact the employment attorneys at LightGabler for assistance.