On the last day of 2019, the IRS released the updated auto mileage rates for 2020 in Notice 2020-05.[1]

The standard mileage rates for 2020 are:

• Business use: 57.5 cents per mile;

• Charitable mileage rate: 14 cents per mile; and

• Medical care and limited cases where moving expenses are still deductible: 17 cents per mile.

The basis reduction amounts for taxpayers using the standard business mileage rates are:

• 27 cents per mile for 2020;

• 26 cents per mile for 2019;

• 25 cents per mile for 2018;

• 25 cents per mile for 2017; and

• 24 cents per mile for 2016.

The maximum automobile cost for purposes of computing the allowance under a fixed and variable rate allowance (FAVR) plan is $50,400 for automobiles (including trucks and vans) for 2020.

For purposes of the fleet-valuation rule found in Reg. §1.61-21(d)(5)(v) and the vehicle cents per mile rule found at Reg. §1.61-21(e) the maximum fair market value of automobiles (including trucks and vans) is $50,400 for 2020.

[1] Notice 2020-05, December 31, 2019, https://www.irs.gov/pub/irs-drop/n-20-05.pdf (retrieved December 31, 2019)