New Mileage Rates Effective 1/1/2016

Monday, February 8, 2016

Effective January 1, 2016, IRS and North Carolina mileage rates were updated along with round-trip mileage guidance.

What’s new?

  • The Internal Revenue Service (IRS) Business Standard Mileage Rate for the use of a car (also vans and pickups) is 54 cents per mile for business miles driven, down from 57.5 cents for 2015.

  • The North Carolina Motor Fleet Rate is now 34 cents per mile, up from 30 cents per mile for 2015.  

  • The mileage rate for moving purposes will be 19 cents per mile driven.

How do the new rates impact travelers?

  • Employees will now be reimbursed 34 cents per mile if they use a personal vehicle for state business when a round-trip exceeds 75 miles (previously 100 miles), whether or not they have a motor fleet denial.

  • However, employees will be reimbursed the business standard mileage rate set by the Internal Revenue Service (54 cents per mile) when using their personal vehicle for state business when the round trip does not exceed 75 miles.

  • Travelers are still encouraged to request motor fleet vehicles for University travel, subject to availability. As communicated in the recent OSBM memo from the State Budget Director, “It is the intent of the State that state employee travel shall be conducted in the most efficient manner and at the lowest and most reasonable cost to the state.”

  • Travelers may also rent vehicles through the State's term contract. Note that, unless prior approval has been obtained from the department head or designee, employees will be responsible for the cost of renting a vehicle that is above the Standard vehicle rate per the State's contract for short-term rentals (OSBM Budget Manual, Section 5.1.27).

Updated resources:

Contact the Travel Office at with any questions.

Thank you,

Julie Hughes, Travel & Complex Payments Supervisor

Ron Sanders, Associate Controller