The Internal Revenue Service has issued Notice 2018-03 providing the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, and moving purposes.
As of January 1, 2018, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) is as follows:
- 54.5 cents per mile for business miles driven;
- 18 cents per mile driven for moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
The standard mileage rates for business and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. The mileage rate for charitable miles is set by statute and remains at 14 cents per mile.
For a copy of Notice 2018-03 please visit: https://www.irs.gov/pub/irs-drop/n-18-03.pdf.