Why the Charitable Mileage Rate Is Still 14 Cents

In 1997, Congress passed the Taxpayer Relief Act, which set the charitable standard mileage rate at 14 cents per mile, effective January 1, 1998. The law explicitly chose not to index the rate for inflation. Since then, the business rate has risen from 31 cents to 72.5 cents — a 134% increase — while the charitable rate has not moved a single cent.

The IRS has repeatedly confirmed in writing that it lacks the authority to change this rate. IRS Office of Chief Counsel letters state: 'Unlike the other standard mileage rates, we cannot change the deduction for charitable mileage. Only Congress can change the charitable standard mileage rate.'

According to the 1997 Treasury Department explanation, the charitable rate is lower because it covers only out-of-pocket operating costs — gas, oil, tolls, and parking. It does not include fixed ownership costs like depreciation, insurance, or maintenance. The theory is that those costs would exist whether or not you drive for charity.

In practice, 14 cents per mile has not covered actual fuel costs alone since the mid-2000s. At $3.50 per gallon and 25 MPG, fuel alone costs 14 cents per mile — meaning the rate covers essentially nothing beyond gas, even before considering oil changes, tire wear, and other vehicle costs.

There is a workaround: instead of using the 14-cent standard rate, you can deduct your actual out-of-pocket vehicle expenses for charitable driving. This includes gas, oil, parking fees, and tolls directly related to the charitable activity. You need receipts and a contemporaneous mileage log showing the charitable purpose of each trip.

For most volunteers, the small increase in deduction is not worth the added recordkeeping burden. But if you drive extensively for a charity — delivering meals, transporting patients, or making regular supply runs — tracking actual expenses can meaningfully increase your deduction.

Multiple bills have been introduced to fix this. Senator Grassley's Fair Deal for Volunteers Act (2008) would have restored IRS authority to set the charitable rate administratively. None have passed. The National Taxpayer Advocate's annual Purple Book continues to recommend either indexing the 14-cent rate for inflation or establishing a uniform rate-setting mechanism across all mileage purposes.

Charitable mileage is deductible only for services provided to a qualified 501(c)(3) organization. Driving to a charity event as a participant (not a volunteer) does not qualify. Political campaigns, lobbying groups, and most civic leagues are not qualified charities. Keep a log of date, organization served, service provided, and round-trip distance.