More year-end changes are coming your way: The IRS has released its standard mileage rates for 2018.

 

After a couple years of decreases, standard business mileage rates are increasing this time around.

 

Rundown of Changes

 

For 2018, the standard mileage rate is 54.5 cents for each mile driven for business purposes – up one cent from 2017’s rate.

 

Note: If employees are reimbursed for business auto travel at higher rates, the amount becomes taxable.

 

Instead of using miles driven, employers can also reimburse workers for the fixed and variable costs of owning and operating an automobile.

 

The IRS sets a maximum standard automobile cost to calculate these payments. For 2018, the cost can’t exceed $27,300 for cars (down $600 from 2017), and $31,000 for trucks and vans (down $300 from 2017).

 

Take note of these additional auto mileage rate updates for 2018.

 

Medical or moving purposes: 18 cents a mile (up one cent from 2017), and

 

Charitable service: 14 cents a mile (unchanged per federal mandate).

 

More info: bit.ly/rates545