Detailed

Standard SIFL tariffs

SIFL rates are a special valuation rule for determining the amount an employer must include in an employee’s income for private travel on an employer-provided aircraft. SIFL amounts are calculated in three steps:

Step 1: The number of land miles flown during the flight is multiplied by the SIFL cents/mile rate for the period of the flight for each flight segment (i.e., the highest rate applies to the first 500 miles, the next higher rate applies to the next 1,000 miles, and the lowest rate applies to miles over 1,500).

Step 2: The calculated amount in Step 1 is multiplied by the appropriate aircraft multiplier. The aircraft multiplier is based on the maximum certified takeoff weight of the aircraft and the type of employee (e.g. a control employees or a non-controlling employee).

Step 3: To the Step 2.

The Department of Transportation shall set and update the SIFL cents/mile rates and applicable terminal fee on a semi-annual basis. The applicable rates from July 1, 2024 to December 31, 2024 shall be as follows:

Observation: The IRS routinely issues semiannual guidance adopting the DOT SIFL rates for tax purposes as is. It is expected that the next IRS publication will continue to adopt the DOT SIFL rates on a ministerial basis and authorize the use of the alternative DOT SIFL rates.