Beginning January 1, 2018, the standard mileage rates designated by the Internal Revenue Service (IRS) are the following:
- 54.5 cents per mile for the use of a car, van, pickup or panel truck for business miles driven (up 1 cent from 2017).
- 18 cents per mile driven for medical or moving purposes (up 1 cent from 2017).
- 14 cents per mile driven in service of charitable organizations (unchanged).
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.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Continue reading