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IRS announces new mileage reimbursement rates for 2018

01/03/2018  |  By: Paul Burris, CPA, Shareholder, Tax Services

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The Internal Revenue Service (IRS) has announced the 2018 standard mileage reimbursement rates. The new rates reflect an increase in the amount individuals and businesses can claim for operating an automobile for business, medical and moving purposes. The charitable rate remains unchanged.

The new rates are:

  • 54.5 cents per mile for business miles driven
  • 18 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business standard mileage rate listed in Notice 2018-03, which was issued before the Tax Cuts and Jobs Act passed, cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026. 

For additional information or specifics on how and when to apply the applicable mileage rate expense, read the complete IRS announcement.

Paul Burris is a Shareholder in the LBMC Tax practice. His practice includes a wide variety of clients, from public companies to sole proprietors. Paul can be reached at pburris@lbmc.com or call 615-309-2348.