On December 13, 2016, the Internal Revenue Service issued the 2017 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
53.5 cents per mile for business miles driven
17 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The business rate will decrease one-half cent from the 2016 rate and the medical or moving rate will decrease two cents. The charitable rate is based on statute and remains the same.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.