The IRA announced late last month that beginning on Jan. 1, 2021, standard mileage rate will increase for the use of a car, van, pickup or panel truck. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. The new rates are as follows: • 56 cents per mile for business miles driven • 16 cents per mile driven for medical or moving purposes • 14 cents per mile driven in service of charitable organizations The business mileage rate decreased by 1.5 cents from the 2020 rates, while the medical and moving expense rate dropped by 1 cent per mile. The charitable rate is set by statute and remains unchanged.