State Mileage Reimbursement Rates for 2016

The federal reimbursement rate in 2016 is 54 cents per mile, down 3.5 cents per mile from the 2015 rate but up 9.5 cents over the rate 10 years before–44.5 cents per mile on Jan. 1, 2006. Thirty-four states have a reimbursement rate that is the same as the federal rate. For those 16 states whose rates differ from the federal rate, reimbursement rates range from 31 cents to 52 cents per mile. No state reimburses at a rate higher than the federal rate.

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The Internal Revenue Service sets the federal reimbursement rate based on an annual study of fixed and variable costs of operating an automobile each year.[1]

  • The federal reimbursement rate in 2016 is 54 cents per mile, down 3.5 cents per mile from the 2015 rate but up 9.5 cents over the rate 10 years before–44.5 cents per mile on Jan. 1, 2006.
  • Since Jan. 1, 2006, the federal rate has been adjusted 11 times.
    • The rate was adjusted up seven times over that period:

      • The average increase over this period was 3.1 cents per mile, ranging from an increase of 1 cent (Jan. 1, 2011, and Jan. 1, 2013) to a high of 8 cents per mile (July 1, 2008).
    • The rate was adjusted down four times over that period:
      • On Jan. 1, 2009, the rate was adjusted from 58.5 cents to 55 cents per mile;
      • On Jan. 1, 2010, the rate was adjusted from 55 cents to 50 cents per mile;
      • On Jan. 1, 2014, the rate was adjusted from 56.5 cents to 56 cents per mile; and
      • On Jan. 1, 2016, the rate was adjusted from 57.5 cents to 54 cents per mile.

Thirty-four states have a reimbursement rate that is the same as the federal rate. For those 16 states whose rates differ from the federal rate, reimbursement rates range from 31 cents to 52 cents per mile. No state reimburses at a rate higher than the federal rate.

  • New Jersey has the lowest mileage reimbursement rate at 31 cents per mile followed by Missouri at 37 cents per mile and Indiana at 40 cents per mile. The New Jersey rate has been the same since 2000.
  • Among states that do not match the federal reimbursement rate, the median rate is 44 cents per mile.
  • Colorado is the only state that distinguishes between two-wheel-drive vehicles—49 cents per mile—and four-wheel-drive vehicles—51 cents per mile—due to road, terrain or adverse weather conditions.

 

 


[1] The federal reimbursement rate discussed here is defined by the Internal Revenue Services as the “optional standard mileage rate used to calculate the deductible costs of operating an automobile for business” and is current as of Jan. 1, 2016.