IRS Announces Standard Mileage Rates for 2017

The IRS has announced the 2017 standard mileage rates. These rates can be (but are not required to be) used to calculate the deductible expenses of using a vehicle for business, charitable, medical or moving purposes.

The standard mileage rates for the use of a vehicle in 2017 will be:

• 53.5 cents per mile for business miles driven, a 0.5 cent decrease from the 2016 rate
• 17 cents per mile for medical or moving purposes, which was 19 cents for 2016
• 14 cents per mile driven while serving charitable organizations

The business mileage rate was reduced half a cent per mile and the medical and moving expense rates each fell 2 cents per mile from 2016. The charitable rate is designated by law and will not change.

The standard mileage rate for business is based on a yearly study of the fixed and variable expenses of operating a vehicle, unlike the rate for medical and moving purposes, which is based solely on the variable expenses.

Using these rates is optional. You can always calculate the actual cost of using your car instead.