New Year, New Mileage Rate

Joanie Wang —  January 5, 2016 — Leave a comment

Hello 2016!

With the new year comes new business resolutions, the start of tax season, and of course, a shiny new and updated IRS mileage reimbursement rate. Hooray! Here’s a quick and dirty run through of the changes and how it affects you and your business travels.

Changes to the IRS 2016 Mileage Rate

on the road - 2016 IRS mileage reimbursement rate

No matter where you are, make sure you get reimbursed correctly for your business travel!

As a result of lower gas prices and other maintenance costs projected for 2016, the IRS has updated the standard mileage reimbursement rate for business travel to reflect these changes. For 2016, the new IRS mileage reimbursement rate is $0.54 per mile, a 3.5-cent decrease from last year.

What Does This Mean for You?

The IRS updates the mileage reimbursement rate to set the standard, not required, rate for that year. We’ve noticed over the years that a large number of users will typically set their own company reimbursement rate rather than use the IRS reimbursement rate. As a result, Expensify admins must manually update the rate in their Expensify policies to reflect a new rate for the new year.

Updating Your Mileage Reimbursement Rate in Expensify

To change the mileage rate, simply go to Admin > Policies > (choose your policy) > Expenses. Scroll down to the Distance section to enter a new mileage reimbursement rate. Once you save your changes, this new rate will be applied to all expenses and policies created after the rate has been changed. Don’t worry, it won’t affect old expenses or expense reports.

Need to start tracking your business mileage expenses? Get started here.

Have questions, comments, or suggestions? Leave us a note here or reach out to us at help@expensify.com. We’re looking forward to hearing from you!

Joanie Wang

Posts

Joanie Wang is the marketing lead at Expensify. When she isn't helping rid the world of expense reports that suck, she is doing yoga, diving into SF's culinary scene, or playing with her adorable puppy Arya.

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