Equipment Type

Holiday Gift From IRS - Standard Mileage Rate Goes Up

The standard mileage rate for the use of a vehicle will be 54.5 cents for every mile of business travel driven.

December 21, 2017
The IRS raised the standard mileage rate to 54.5 cents

The IRS posted a new notice for business mileage reimbursement starting next year. .

Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.

• 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.

• 14 cents per mile driven in service of charitable organizations - no change

The standard mileage rate for business comes from an annual study of the fixed and variable costs of operating an automobile, while the rate for medical and moving purposes is based on the variable costs. A year ago, the I.R.S. reduced the reimbursement rate 0.5 cents.

The increase is due to higher fuel costs, according to Runzheimer, a business vehicle reimbursement solutions provider that calculates the rate with the IRS. "All of the ownership and operating costs have been relatively stable, with fuel costs showing the greatest increase, offset by small decreases in vehicle ownership costs." said Donna Koppensteiner-Reidy, senior VP of business development and marketing at Runzheimer.

Read the notice.

 

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