Car Driving On Road

How much will your mileage be worth in 2017?

The IRS has announced mileage rates for 2017 for business, charitable, medical or moving purposes, effective January 1, 2017. Rates have again decreased due to the continued reduced cost of operating an automobile:

  • For business miles driven, the new rate is 53.5 cents per mile, down from 54 cents for 2016.
  • For medical or moving purposes, the rate is 17 cents per mile drive, down from 19 cents for 2016.
  • For service to charitable organizations, the rate remains at 14 cents per mile per statute.

If you took advantage of Section 179 deprecation for a vehicle, you may not use the standard business mileage rate for that vehicle. Similarly, if you used a Modified Accelerated Cost Recovery System (MACRS) depreciation method, you cannot also claim business mileage on that vehicle.

Please note – because rates have reduced, employers who reimburse employees should be sure to change to the  lower 2017 rates, effective for any mileage reported on or after January 1, 2017, regardless of travel dates. Even if the mileage occurred in 2016, it should be reimbursed at the lower 2017 rates if submitted after December 31, 2016.