Did you know tax-deductible mileage rates change from year to year?
It may seem like common sense that deductible mileage rates would change from year to year.
But it's also one of those things that's easy to forget. After all, the tax world can be a complicated space; and keeping up with the "devil in the detail" is one of the reasons it helps to have an accountant in your corner.
Why do rates change from year to year?
In a nut shell, rates change over time because the cost of operating a vehicle changes over time. As the IRS states, "The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law."
Whether you're procrastinating in compiling your 2016 tax deductions or you're looking ahead to 2017, we've created a handy list and corresponding graphs below to show you how tax-deductible mileage rates change over time. We've also included 2015 as a frame of reference.
2015 Cents Per Mile
Business - 57.5
Medical/Moving - 23
Charitable - 14
2016 Cents Per Mile
Business - 54
Medical/Moving - 19
Charitable - 14
2017 Cents Per Mile
Business - 53.5
Medical/Moving - 17
Charitable - 14
Business Miles
Medical and/or Moving Miles
Charitable Miles
Given the information above, be sure to speak with your CPA / accountant about how you can best maximize your mileage tax deductions. And, as always, you can visit the IRS's official site for continued reading.
Continued Reading from the IRS:
2015 Standard Mileage Rates
2016 Standard Mileage Rates
2017 Standard Mileage Rates