Beginning on January 1, 2018, the standard mileage rates used to calculate deductible costs of operating a vehicle have increased. These rates apply to cars, vans, pickups and panel trucks.

  • 54.5 cents per mile of business travel driven; Up 1 cent from 2017
  • 18 cents per mile for medical or moving purposes; Up 1 cent from 2017
  • 14 cents per mile in service of charitable organizations; Remains unchanged from 2017

These rates are set based on an annual study conducted by an independent contractor hired by the IRS.

As before, taxpayers still have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. Also, the business standard mileage rate cannot be used for more than four (4) vehicles used simultaneously. View Rev. Proc. 2010-51 for other requirements.

Notice 2018-03 published by the IRS contains all of the requirements and restrictions of the standard mileage .