Reimbursement Rate
Updated: 06 January 2025
What Does Reimbursement Rate Mean?
The reimbursement rate is the tax-deductible value for using a vehicle for business, medical, charitable, or moving purposes. This rate, set by the Internal Revenue Service, may change over time.
It is also referred to as the mileage reimbursement rate.
Insuranceopedia Explains Reimbursement Rate
The reimbursement rate is set based on the costs of operating and maintaining vehicles. As of 2017, the reimbursement rates are:
- Business Travel: 53.5 cents per mile
- Medical or Moving: 17 cents per mile
- Charity-Related Travel: 14 cents per mile
A taxpayer can either use the standard reimbursement rate or calculate the actual cost of mileage for the tax deduction.
Synonyms
Mileage Reimbursement Rate
