The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, or medical 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 all business miles driven (up 1 cent from 2017)
- 18 cents per mile driven for medical purposes (up 1 cent from 2017)
- 14 cents per mile driven in service of charitable organizations (unchanged from 2017)
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
IRS Notice 2018-03 contains additional information about mileage rates.