It is that time of year again and the IRS has announced the 2016 Standard Mileage Rates for Business, Medical, and Moving. Last year, I was the provider of good tidings when I announced rates were up. However, this year, the tidings are not so good. The 2016 reimbursement rate is down to 54 cents per mile for business, 19 cents per mile driven for medical reasons or moving purposes, and 14 cents per mile driven for charitable purposes, dropping it below even 2014 rates. Perhaps the IRS took into account that gas prices are still down. According to the AAA Daily Fuel Gauge Report, the national average for a gallon of gas is $1.99, with Pennsylvania and Lancaster coming in slightly higher at $2.15 per gallon each.
If you would like to compare last year’s reimbursement numbers check out Cost of Gas Down, Reimbursement Rate Up. Incidentally, if you read that post last year, you might not be so surprised with this year’s reduced reimbursement rates.