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Standard Mileage Rates for 2018

Effective January 1, 2018, the standard mileage rates for the use of car, pickup, van, or panel truck are:

• 54.5 cents for every mile of business travel driven
• 18 cents per mile driven for medical or moving purposes.
• 14 cents per mile driven in service of charitable organizations. 

The standard mileage rates for business, medical, or moving purposes have increased by 1 cent per mile from 2017’s rates. The rates for business travel are based on an annual study of the costs of operating a vehicle and are influenced by both fixed and variable costs. The rate for medical or moving purposes are based on variable costs. The charitable rate is set by law and has not changed.

These optional standard mileage rates are used to calculate the general deductible cost of operating an automobile for the purposes of business, charity, medical or moving.

Taxpayers are given the option of claiming deductions based on the actual cost of using a vehicle rather than the standard rates that are detailed here.

Stipulations and Exceptions

Taxpayers may not:

• Use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS).
• Use the business standard mileage rate for a vehicle after claiming a Section 179 deduction for that vehicle.
• Use the business standard mileage rate for more than four vehicles in use at the same time.

Reduction amounts were also announced by the IRS. These amounts are for those choosing the business standard mileage rate as well as the maximum standard automobile cost.

To see if these reduction amounts announced by the IRS apply to you, or for other questions about standard mileage rates or driving activities you should keep track of in 2018, please contact the office.