IRS Announces 2018 Mileage Rates

Jim DohertyNews

The Internal Revenue Service has announced new mileage rates for 2018 for use in calculating reimbursements or deductions for tax purposes:

  • Business use: 54.5 cents a mile, up from 53.5 cents a mile in 2017
  • Medical use: 18 cents a mile, up from 17 cents a mile in 2017
  • Moving use: 18 cents a mile, up from 17 cents a mile in 2017
  • Charitable use: 14 cents a mile, the same as in 2017

In addition, the IRS has adjusted the standard vehicle cost for calculating FAVR (Fixed and Variable Rate) programs:

  • For automobiles, the standard vehicle cost may not exceed $27,300
  • For trucks and vans, the standard vehicle cost may not exceed $31,000

The original IRS Notice 2018-03 can be found on the IRS website: irs.gov/pub/irs-drop/n-18-03.pdf

Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.

About the Author

Jim Doherty

Jim Doherty has developed FAVR plans with many highly visible companies large and small, and has routinely documented significant program savings, heightened driver acceptance and satisfaction, and reduced fleet liability with greater control and administrative efficiency. Let's Connect

Share this Post