Standard Mileage Rate Increase

Beginning January 1, 2013, the standard mileage rate will increase by one cent.  Cars, vans, pickups, and panel trucks will rate 56.5 cents per mile driven for business purposes, 24 cents per mile driven for medical or moving purposes, and 14 cents per mile driven for charitable purposes.

The standard mileage rate for business purposes is based on an annual study of the fixed and variable costs of operating an automobile, while the rate for medical and moving purposes is based solely on the variable costs. 

Taxpayers may opt to calculate the actual costs of using their vehicle rather than using the standard mileage rate, but they cannot use the business standard mileage rate for a vehicle after any depreciation method under the Modified Accelerated cost Recovery System (MACRS) has been used or after they’ve claimed a Section 179 deduction for that vehicle.  Also, the business standard mileage rate cannot be used for more than four vehicles used at the same time.