What Are the 2018 Standard Mileage Rates?

Tax Deductions and Credits turbo

Calling all commuters! The IRS recently announced the 2018 “standard mileage rates”. Whenever you drive for business, medical reasons, or in support of a charitable organization, you may be able to get a mileage deduction and save money on your taxes.

Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 54.5 cents per mile for business miles driven, up from 53.5 cents in 2017
  • 18 cents per mile driven for medical purposes, up from 17 cents in 2017
  • 14 cents per mile driven in service of charitable organizations

The standard mileage rate for a business is based on an annual study of the fixed and variable costs of operating an automobile, and the rate for medical purposes is based on the variable costs.

In general, you can only claim the deduction if you use your personal vehicle for your business, medical, or charitable purposes. For example, if you use a vehicle that was purchased by a business you cannot claim business mileage.

*New, for 2018, under the new tax reform law, you can no longer deduct moving expenses unless you are active duty military so the standard mileage rate for moving is not included.

Here’s a breakdown of what is covered for each:

Business Mileage

With business mileage, your commute to your regular place of business cannot be deducted when you’re an employee. If you are self-employed any driving you do directly related to your business, like meeting with a client or going to a networking event, may be deductible business mileage. If you were an employee in 2017 and had unreimbursed expenses for driving somewhere for work outside of your regular office, then you can take the standard mileage deduction on your 2017 taxes. However, for 2018 under the new tax law, miscellaneous expenses like unreimbursed mileage cannot be deducted for tax year 2018 (the taxes you file in 2018) through Dec. 31, 2025.

Medical Mileage

Good news! You can claim medical miles for those that you drive to receive medical care, which includes you, your spouse, or your children. The amount of this deduction is added to your medical deduction, which means it will only be included if your total medical expenses exceed 7.5% of your adjusted gross income and you can itemize your tax deductions.

Charitable Mileage

You can also claim charitable mileage for the driving you do in service of a recognized 501 (c)(3) charitable organization. Another good reason to volunteer your time!

Come tax time, don’t worry about knowing these tax rules. TurboTax will ask you simple questions and give you the tax deductions and credits you are eligible for based on your answers. If you have questions, you can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. The TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.

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Comments (10) Leave your comment

  1. I have a quick question. I believe their are deductions FOR AGI and deductions people refer to that could fall under itemized. My wife is a Uber driver and its essentially her own business, could she deduct the mileage driven only when she is online for Uber.

  2. Hi Lisa

    Can mileage be claimed where we drive to and from my wife’s 96 year old aunt to clean her apartment once per week?

    Thank you


  3. Does this include miles driven to see a child in the hospital? My daughter was a micro preemie born at 1 lb 4 oz and we drove 3.5 hours almost every day to see her in the hospital for 7 months.

  4. Hi Lisa, how about ride share drivers like Uber and Lyft? Let’s say I made 25k just driving for uber, no other income. And I put 10k miles on my car (while driving for uber)

  5. I am considering a per diem homecare RN position with no mileage reimbursement. Will I be able to deduct mileage from my income tax?

  6. I deliver auto parts and usually go over 150 miles a day, does this mean I am unable to get reimbursement?

  7. Some Tax Reform: I drive about 20,000 miles a year to clients . I am unreimbursed by my company . My deductions are well over 24,000 for married filing jointly. I guess they forgot about Salesman. Not to mention meals, and other expenses related to my job.

    1. Hi JP,
      Yes un-reimbursed employee expenses are going away starting in 2018 since the provision for miscellaneous itemized deductions is going away.
      Thank you,
      Lisa Greene-Lewis

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