2010 Standard Mileage Rates  

Beginning on January 1, 2010, the standard mileage rates for the use of a car (also vans, pickups and panel trucks) will be: 

• 50 cents per mile for business miles driven 
• 16.5 cents per mile driven for medical or moving purposes 
• 14 cents per mile driven in service of charitable organizations 

The 2010 rates are slightly lower than last year’s reflecting generally lower transportation costs compared to 2009.   

The business mileage rate can be used by employers to reimburse employees tax-free under an accountable plan for employees who supply their own autos for business use.   

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.  In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.  Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. 

It is very important to keep records (log books) of your business miles driven during the year in order to be eligible to take deductions for your vehicle use.  This is an area that the IRS continues to look at closely during audits. 

1/22/10

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