Standard Mileage Rates Increase for 2018

Standard Mileage Rates

The IRS has released the 2018 optional standard mileage rates to be used to calculate the deductible costs of operating an automobile for business, medical, moving and charitable purposes. Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017)
  • 18 cents per mile for medical and moving expenses (up from 17 cents in 2017)
  • 14 cents per mile for miles driven for charitable purposes (permanently set by statute at 14 cents) – note, the new tax law will index this rate, which had been permanent, for inflation going forward

Limitations and Notes

A taxpayer may not use the business standard mileage rate:

  • after using a depreciation method under Code Sec. 168
  • after taking Sec. 179 depreciation
  • for more than four vehicles at a time