Notice 2021-2: Standard mileage rates for 2021

Notice 2021-2: Standard mileage rates for 2021

The IRS today issued an advance version of Notice 2021-2 providing the standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving purposes in 2021.


Notice 2021-2 [PDF 80 KB] provides that beginning January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven (reduced from 57.5 cents per mile for 2020)
  • 16 cents per mile driven for medical or moving purposes for qualified active duty members of the Armed Forces (reduced from 17 cents per mile for 2020) (the deduction for moving expenses has been suspended for taxpayers other than active-duty members of the U.S. Armed Forces)
  • 14 cents per mile driven in service of charitable organizations (no change)

In addition to providing the standard mileage rates, Notice 2021-2 provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan. 

For an automobile the taxpayer owns and uses for business purposes, 26 cents of the 56 cents per mile rate in 2021 is attributable to depreciation expense (down from 27 cents per mile for 2020).

Read related IRS release—IR-2020-279

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us