Quick Tip:

Standard mileage rates for business use of car

Taxpayers can use the standard mileage rates posted below for the costs of operating automobiles or trucks owned or leased by them. This is also the maximum rate that employers may reimburse their employees on a tax free basis.

2017 2016
Business

53.5

54¢
Medical 17

19¢

Charitable 14 14¢

Comment:

The standard mileage rate is taken in lieu of claiming a deduction for operating and fixed costs of an automobile allocable to business uses. If operating expenses are high, the standard mileage rate method may produce a smaller deduction than would be obtained by claiming actual expenses plus depreciation or lease payments. However, the standard mileage rate method may yield bigger deductions than the actual expense method, if the business mileage is high, and the auto is a thrifty, high-mileage model.