2018 Standard Mileage Rate
For 2018, the Standard Mileage Rate is 54.5¢ (Business use), 14¢ (Charitable service) and 18¢ (Medical or moving).
Effective 2018-01-01Source: Notice 2018-03 (IRS)Verified 2026-08-29
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Business use | 53.5¢ | 54.5¢ | +1¢ (+1.9%) |
| Charitable service | 14¢ | 14¢ | +0¢ (+0.0%) |
| Medical or moving | 17¢ | 18¢ | +1¢ (+5.9%) |
Who it applies to
Taxpayers who use the optional standard mileage rates to compute the deductible cost of operating an automobile
What changed this year, and why
The 2018 standard mileage rates set by the IRS in Notice 2018-03
Common questions
- What is the 2018 standard mileage rate for business use?
- 54.5¢ per mile for all miles of business use, effective January 1, 2018.
- What is the 2018 standard mileage rate for charitable service?
- 14¢ per mile for use of an automobile in rendering gratuitous services to a charitable organization, effective January 1, 2018.
- What is the 2018 standard mileage rate for medical or moving use?
- 18¢ per mile for medical care or deductible moving expenses, effective January 1, 2018.
What the rate covers, and what you may add to it
The standard mileage rate is meant to cover the full cost of operating the vehicle, including gasoline, oil, maintenance, insurance, registration, and depreciation. However, the rate does not include two out-of-pocket items: parking fees and tolls. If you incur parking fees or tolls that are business-related, you may deduct those separately in addition to your mileage deduction. There is an important exception for parking at your workplace. Even though you are at work and presumably engaged in business, the IRS treats parking fees at your regular place of work as nondeductible commuting expenses rather than as deductible business parking. Only parking fees incurred while traveling for business purposes, such as at a client's office or a job site away from your regular workplace, qualify for the additional deduction. Tolls paid on any business trip are deductible regardless of destination.
Parking fees and tolls. In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. (Park- ing fees you pay to park your car at your place of work are nondeductible commuting expen- ses.)
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
You must choose the standard rate in the car's first year
If you own a car and want to use the standard mileage rate for business, you must make that choice in the very first year the car is available for use in your business. This is a one-time election. In subsequent years, you retain the flexibility to switch between the standard mileage rate and actual expenses from year to year. The rule is stricter for leased vehicles: if you use the standard mileage rate for a leased car, you must continue using it for the entire lease period. You cannot alternate between methods mid-lease. For 2018, the business rate is 54.5¢ per mile. The election must be made by the due date of your tax return, including any extensions, and once made, it cannot be revoked for that year. However, the ability to switch in later years means you can compare the standard rate against actual expenses each year and choose whichever yields the larger deduction.
Choosing the standard mileage rate. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your busi- ness. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
Why a fleet cannot use the standard rate
Taxpayers who own or lease five or more cars that are used for business at the same time cannot use the standard mileage rate for any of those vehicles. This rule applies to the business use of each car in the fleet. Instead, you must use the actual expense method for all five or more vehicles. Actual expenses include depreciation, lease payments, maintenance, repairs, gasoline, insurance, and registration fees. You must allocate these expenses between business and personal use based on miles driven. While the actual expense method requires more recordkeeping, it may result in a larger deduction if your vehicles have high operating costs. The five-or-more-cars rule is designed to prevent taxpayers with large fleets from using a simplified method intended for individual vehicles. If you own or lease four or fewer cars for business, you can choose the standard mileage rate of 54.5 cents per mile for business use in 2018, or 18 cents per mile for medical or moving purposes, or 14 cents per mile for charitable service. The fleet restriction applies only when all five or more vehicles are used for business simultaneously.
Five or more cars. If you own or lease five or more cars that are used for business at the same time, you can’t use the standard mileage rate for the business use of any car. However, you may be able to deduct your actual expen- ses for operating each of the cars in your busi- ness.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
The drive to work is never deductible mileage
The IRS treats the daily trip between home and work as a personal expense, not a business expense. You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These are classified as personal commuting expenses. The distance does not matter. Even if your home is far from your regular workplace, commuting expenses remain nondeductible. The nature of the trip does not change either. If you work during the commute by making business calls on your cell phone or conducting a business discussion with a colleague who rides along, the trip is still considered personal commuting. The IRS does not allow a deduction for these expenses regardless of what productive work you perform during the drive. Only mileage incurred after arriving at your regular workplace and traveling to another business location qualifies for the business mileage rate. This rule applies whether you are an employee or self-employed.
Commuting expenses. You can’t deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You can’t de- duct commuting expenses no matter how far your home is from your regular place of work. You can’t deduct commuting expenses even if you work during the commuting trip.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
Splitting a car between business and personal use
When a vehicle serves both business and personal purposes, you must split the total operating expenses between the two uses. The IRS allows you to divide expenses based on the miles driven for each purpose. For example, if you drive 20,000 miles during the year with 12,000 miles for business and 8,000 miles for personal use, you can claim only 60 percent of the cost of operating the car as a business expense. The same allocation principle applies if you use the standard mileage rate. You multiply your business miles by the applicable rate. In 2018, that is 54.5 cents per mile for business use, 18 cents per mile for medical or moving, or 14 cents per mile for charitable service. Personal miles generate no deduction under any method. Accurate mileage records are essential. You must track the date, destination, business purpose, and miles for each business trip. Without a contemporaneous mileage log, the IRS may disallow the business portion of your deduction entirely. Keep receipts for parking fees and tolls separately, as those are deductible in addition to the mileage rate when incurred for business.
Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between busi- ness and personal use. You can divide your ex- pense based on the miles driven for each pur- pose. Example. You are a contractor and drive your car 20,000 miles during the year: 12,000 miles for business use and 8,000 miles for per- sonal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense.
Publication 463 (2018), Travel, Gift, and Car Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2018-03 (IRS)
- Business use
The standard mileage rate for transportation or travel expenses is 54.5 cents per mile for all miles of business use (business standard mileage rate).
- Charitable service
The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170.
- Medical or moving
The standard mileage rate is 18 cents per mile for use of an automobile (1) for medical care described in § 213, or (2) as part of a move for which the expenses are deductible under § 217.