Automobile expenses - mileage rates
(revised December  2009)

Each year, the Internal Revenue Service issues standard mileage rates that you can use (in lieu of actual expenses) for computing tax deductions for the cost of automobile usage for business, charitable, medical and moving expenses.  The standard mileage rates can also be used by employers to reimburse employees for their business use of their autombiles.

These standard mileage rates can be used even if the actual expenses for the vehicle usage are lower than the IRS issued mileage rates.  These rates can be used for passenger automoibiles, vans and pickup trucks and panel trucks.  Finally, for years starting with 2004 the standard mileage rates can be used for up to four vehicles that are owned or leased and used at the same time.  

There are few limitations on choosing the standard mileage rate method.  First, you have to use the use the standard mileage rate in the first year the vehicle is used for business.  Second, the vehilcle cannot be used for hire, such as a taxicab.  Finally in the case of leased automobiles, either the standard mileage rate or the acutal expense method must be consistantly used during the entire lease term.

The following table lists the standard mileage rates in effect for 2009 and the rates for 2010.

Return to FAQs page

To return to a different webpage, press on one of the links on the menu to the left of this page.