Once again this year, the IRS standard mileage rates are going up 1 cent for 2013 business miles driven. The increase applies to business miles driven and also to medical and moving rates, but not to the charitable miles. Here are the exact rates:
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56.5 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations (same as 2012)
IMPORTANT: Use the 2012 mileage rate for your 2012 tax year tax calculations, when you file your 2012 tax return in early 2013.
Actual cost vs. standard deduction - which is better?
The IRS also notes that you may calculate the actual costs of using your vehicle for business purposes, rather than the standard mileage rate. If you are wondering which is better for your business, this article explains the difference between using actual mileage vs. the standard mileage rates. There are some restrictions on using the standard mileage rate that are explained in this article.