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2018 Standard Mileage Rates After Federal Tax Reform

Written by PayrollOrg Staff | Feb 6, 2018 3:18:00 PM

The Tax Cuts and Jobs Act (TCJA; Pub. L. 115-97) suspends the deduction for miles driven for moving purposes for tax years 2018 through 2025. This means that all job-related moving expenses paid by the employer to or on behalf of the employee are taxable, whether for mileage or any other expense. The mileage rate paid by the employer is irrelevant, except for certain moves made by members of the U.S. military, which still qualify. Previously, the IRS released the 2018 standard mileage rates in Notice 2018-3, not knowing what, if any, tax reform legislation would be enacted. 

Notice 2018-3 provided the 2018 standard mileage rates: the business standard mileage rate is 54.5 cents per mile (up from 53.5 cents per mile); the standard rate for miles driven for medical purposes or qualifying military moves is 18 cents per mile (up from 17 cents per mile); and the standard mileage rate for operating a passenger car for charitable purposes, which is set by law, is 14 cents per mile (unchanged).