The Internal Revenue Service has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving 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 1 cent from the rate in 2017
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate in 2017
- 14 cents per mile driven in service of charitable organizations, which is unchanged
The business mileage rate and the medical and moving expense rates each increased 1 cent per mile from the rates in 2017. The charitable rate is set by statute and remains 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.