The IRS Standard Rate Goes Up For 2018-CarData Reviews Trends Over the Pasts Two Decades

The IRS Standard Rate Goes Up For 2018-CarData Reviews Trends Over the Pasts Two Decades

The IRS Standard Mileage Rate and FAVR plan maximum vehicle costs, are published annually in IRS Rev Procedure 2010-51  Notice 2018-03.

 IRS STANDARD MILEAGE RATE

Effective January 1, the IRS Standard Mileage Rate for 2018 is up 1 cent to 54.5 cents per mile.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.

The application for the IRS Standard Rate is to reimburse occasional business use.

The table below created by CarData Online displays the IRS Standard Rate for the past 25 years. During those 25 years, the IRS adjusted the Standard Rate in mid-year only four times, in 1999, 2005, 2008 and in 2011. Mid-term adjustments are a function of dramatic changes in fuel prices, as happened with Hurricane Katrina in 2005.

IRS STANDARD MILEAGE RATE
Effective Date                Until Date             Rate Value
2018 January                                                        54.50
2017 January                2017 December            53.50
2016 January                2016 December            54.00
2015 January                2015 December            57.50
2014 January                2014 December            56.00
2013 January                2013 December            56.50
2011 July                       2012 December            55.50
2011 January                2011 June                       51.00
2010 January                2010 December            50.00
2009 January                2009 December            55.00
2008 July                       2008 December            58.50
2008 January                2008 June                       50.50
2007 January                2007 December            48.50
2006 January                2006 December            44.50
2005 September          2005 December            48.50
2005 January                2005 August                  40.50
2004 January                2004 December            37.50
2003 January                2003 December            36.00
2002 January                2002 December            36.50
2001 January                2001 December            34.50
2000 January                2000 December            32.50
1999 April                     1999 December            31.00
1998 January                1999 March                   32.50
1997 January                1997 December            31.50
1996 January                1996 December            31.00
1995 January                1995 December            30.00
1994 January                1994 December            29.00

CarData IRS Standard Mileage Rate Chart
IRS FAVR PLAN MAXIMUM VEHICLE COSTS

For purposes of computing the allowance under a FAVR plan, the maximum allowable cost in 2018 is $27,300 for automobiles (down from $27,900 in 2017 and from $28,000 in 2016); and $31,000 for trucks and vans (down from $31,300 in 2017 and now the same as it was in 2016 at $31,000).

Click HERE for more details on CarData Consultants, and how to find the best IRS compliant reimbursement plan for your business.

Please see official IRS release HERE.

About CarData Consultants CarData provides precision vehicle reimbursement programs for the mobile workforce. CarData services save money, reduce risk, and remove administration. CarData programs are compliant with the IRS and the CRA procedures.

MEDIA Contact: Megan Dean
Marketing Communications | CarData Consultants Inc.
Direct: 303-434-3307 | FAX: 929-235-7525
mdean@cardataconsultants.com