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.

Get started today!

Comments (40) Leave your comment

  1. I’ve been told I can no longer take millage as a deduction on my Taxss. I’m in outside Sales Rep. and recieve no gas nor car exspence from my Employer? Is that true

    1. Hi Shirley,
      Unfortunately, for tax years 2018 through 2025, the deduction of un-reimbursed employee expenses, claimed on the previous 2106 form, have been suspended.

  2. I am an ordained Elder at my church and typically drive 110 miles round trip 3-4 times per week. I teach classes, attend meetings, preach and attend services regularly. I was told this year I am not able to claim this mileage on my taxes as a non paid clergy of the church.

    Thank you for your insight.

    1. Hello Vicki,
      You may be able to deduct some of your expenses as a business expense if you perform Clergy services independently and receive payment.
      Thanks

  3. If you get a 1099, can you deduct mileage driven for your job? If so is the amount per mile 54.5 cents? Is there a form Sch A 1040 or a Sch B 1040?

  4. I’ve used TurboTax now for three years and the option to select the standard $0.54 per mile deduction is no longer shown as an option. Anyone else figure out how to locate this very critical deduction? The standard just assigns some arbitrary amount and I drive for work. I need that $0.54 per mile option! Hope someone out there has the answer. TurboTax does not.

    1. Hey Laura, so the real question would be if you are a w2 or 1099 employee. If you’re not an independent contractor and self employed (self employed get a 1099) and you are instead employed by a company that gives you a w2 chances are you’ll not get any deduction for mileage this year unless you either drove a ton or you have a ton of deductions. The major change in the new 2018 tax law was that it eliminated the dependant exemptions AND increased standard deductions to 12,000 per person (24,000 if filing as married) so to get a mileage deduction you’ll need all deductions to be over 12,000 or $24,000 depending on if you’re married filing jointly. Chances are if you’re inputting mileage on your tax software and it’s not moving the needle it’s cuz the mileage isn’t as much as the standard deduction.

    2. Turbo tax will not let me enter a depreciation amount for the condo I rent under the section of rental property. It makes me enter items like basis and date property was changed to business. I entered these correctly, but since I do straight line depreciation- I know what the depreciation should be. It is the same every year. But the answer turbo tax computes is more than double the correct depreciation.

      Do you know any way to override the depreciation amount so that I can enter a number? Thank you.

  5. Where can I put (form, line #) milage travel for Dr. visits and lab work? There have been increased travel this year.

    Also with a self owned business (antique sales) with space rented in a “mall environment” is there a specific line to put the travel expense as well as keeping a storage unit for merchandise to move in/out of shop?

  6. Lisa, I am in Business Development and average 35-40k business miles per year. I do receive a vehicle allowance of 800.00 non taxed per month. What can I do here ?

  7. HI LISA WHAT IS THE OTHER WAY TO CLAIM UNREIMBURSED MILES BECAUSE IM WORKING FOR A ELECTRICAL COMPANY DOING SERVICE CALL I DRIVE 125 MILES EVERY DAY

  8. My daughter drove her sister to many medical appointments and is being reimbursed for mileage. She thinks she has to pay income tax on this. Does she not get to deduct from the reimbursement the 18 cents per mile driven to arrive at taxable amount? Where can I find literature about this?

  9. 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.

  10. 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

    Russ

  11. 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.

  12. Hi Lisa: I work for a company as a Outside Sales Rep. And I am paid on 100 percent Commission rate.my company doesn’t pay for any of my expenses. Am I allowed to right off my business miles still?

  13. Question from a new freelancer, to experts and folks who truly know from experience: in a family of two self-employed spouses, married filing jointly, the total amount of miles or dollars that one can deduct doubles? I mean, is there a set amount per spouse? Thanks in advance for clear answers with actionable insights.

  14. Hi, I have a question about driving back and forth to school 5 days a week and saving every single gas receipt I have obtained. My college is 22 miles from my house and spend roughly about 40-80 bucks on gas alone….would that be considered a tax write off?

  15. 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)

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

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

  18. I guess home health nurses will get screwed too? Home health nurses often drive a significant distance to see clients and do not receive reimbursement. I’m going to guess that many positions will be opening up in the near future for these types of jobs.

  19. 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

      1. As an Uber or Lyft driver, I can still deduct my mileage? Can I also deduct other expenses such as buying a newer car?

  20. Hi Lisa. This is my first time with turbo tax. How does it let you know if standard deductions or itemizing is the better of two. Also can you put your real estate taxes, excise taxes in with the standard deduction?

Leave a Reply to PENNY A COOPER Cancel reply