2017 Mileage Rates Released -
The IRS has released the 2017 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.
- Rate has decreased to 53.5 cents per mile for business uses.
- Rate has decreased to 17 cents per mile for medical and moving uses.
- Rate remains at 14 cents per mile for charitable uses.
- For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $27,900 ($31,300 for trucks and vans).
- The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2017.
- The updated rates are effective for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2017.
SOURCE: IRS News release IR-2016-169, December 13, 2016.
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