2017 Optional Standard Mileage Rates

Posted on May 10, 2015

2017 Optional Standard Mileage Rates

For 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

53.5 cents per mile for business miles driven, down from 54 cents in 2016

17 cents per mile driven for medical or moving purposes, down from 19 cents in 2016

14 cents 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 costs of operating an automobile including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs such as gas and oil. The charitable rate is set by law.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

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.