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Fill your tank with info you can use for tax deductions and more. Here’s a quick update on the recent Internal Revenue Service (IRS) actions on the standard and medical mileage rates.
What is the IRS standard mileage rate for 2024?
On December 14, 2023, the IRS announced the optional 2024 business standard mileage rate is increasing to 67 cents. This is a small (but always welcome) increase of 1.5 cents—up from the 65.5 cent rate for 2023.
What is the IRS medical mileage rate for 2024?
While the IRS increased the 2024 business standard mileage rate, the new medical mileage rate of 21 cents per mile is a 1 cent decrease—down from the 2023 rate of 22 cents per mile. This is important information to note, as mileage to and from a medical service appointment is generally an eligible expense under a Health Savings Account (HSA), healthcare Flexible Spending Account (FSA), or Health Reimbursement Arrangement (HRA).
Can HSAs, FSAs, or HRAs be used to pay for medical travel?
Yes, you can typically use your HSA, FSA, or HRA for medical-related travel. When you travel to receive medical care, the expense may be deductible under Internal Revenue Code § 213 if it’s primarily for, and essential to, medical care. Keep a mileage log and save your gas receipts to submit for reimbursement.
Use this medical mileage information for tax preparation
Gas prices continue to fluctuate, which means savings are always appreciated. While you don’t have to take any direct action, it’s wise to note the new standard and medical mileage rates when it’s time to prepare your calendar year 2023 income taxes.
HealthEquity does not provide legal, tax or financial advice.
The preceding general summary is intended to educate employers and plan sponsors on the potential effects of government guidance on employee benefit plans. This summary is not and should not be construed as legal or tax advice. As always, we strongly encourage employers and plan sponsors to consult competent legal or benefits counsel for all guidance on how the actions apply in their specific circumstances.
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