Many employers reimburse employees for the cost of using a car for business purposes. The 2018 optional standard mileage rates for calculating the deductible cost of operating a car for business, charitable, medical or moving purposes have changed from the 2017 rates.
The standard mileage rates for the use of a car for business purposes starting January 1, 2018 is
- 5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
- 14 cents per mile driven in service of charitable organizations.
Individuals do have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
