WASHINGTON — If you travel using your own car for work, listen up. The Internal Revenue Service on Thursday announced new mileage rates set to go into effect next year.
The new rates, which kick in Jan. 1, are:
- 54.5 cents per mile of business travel — up 1 cent from the 2017 rate
- 18 cents per mile for medical or moving purposes — up 1 cent from the 2017 rate
The rate for miles driven as part of any charity work is set by law and remains unchanged at 14 cents per mile.
The IRS standard mileage rate refers to the amount taxpayers who use their own vehicles to travel for work are legally allowed to deduct from their taxes. Many companies also use the mileage rates to directly reimburse employees for work-related travel.
The mileage rate is calculated by the IRS annually based on a study of the costs of operating a car.
