The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2018, will be 54.5 cents per mile, up 1 cent from the 53.5 cents per mile rate in effect during 2017.
The federal mileage rates for 2018 for the use of a car, van, pickups or panel trucks will be:
* 54.5¢ per mile driven for business (increase of 1¢ from 2017)
* 18¢ per mile driven for medical or moving purposes (increase of 1¢ from 2017)
* 14¢ per mile driven in service of charitable organizations (same rate as 2017)
The mileage rates above can be used to calculate how much employers should reimburse employees who use their own cars for business purposes. Taxpayers always have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates.
For more information, please refer to the recent IRS news release.