Effective January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
- 54.5¢ per mile for business miles driven
- 18¢ per mile driven for medical or moving purposes
- 14¢ per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable cost of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
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. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.