After a decrease in the prior two years, the optional standard mileage rates for business use of a vehicle will increase slightly in 2018. Taxpayers may use these optional standard mileage rates to calculate the deductible costs of operating an automobile (van, pickup or panel truck) for business, charitable, medical or moving purposes.
For business use, the rate for 2018 will be 54.5 cents per mile (up from 53.5 cents per mile in 2017). Driving for medical or moving purposes may be deducted at 18 cents per mile. The portion of the business standard mileage rate that is treated as depreciation will remain 25 cents per mile for 2018. The rate for service to a charitable organization remains unchanged at 14 cents per mile. Refer to Notice 2018-03 for more information.