Tags: 2017 | mileage | reimbursement | rate

2017 Mileage Reimbursement Rate, Down From Last Year, Now In Effect

Image: 2017 Mileage Reimbursement Rate, Down From Last Year, Now In Effect

The 2017 business mileage reimbursement rate is lower than the last two years. (Scott Olson/Getty Images)
 

By    |   Wednesday, 04 Jan 2017 03:46 PM

The 2017 business mileage reimbursement rate set by the IRS for tax purposes dropped for the second straight year, to 53.5 cents per mile from the 2016 rate of 54 cents per mile.

The IRS announced the change in December, and it took effect Jan. 1. The deductions for medical and moving use also dropped from 19 cents a mile in 2016 to 17 cents a mile in 2017. Charitable use deduction remained at 14 cents a mile.

It is the fifth year of the past 16 that has seen a decrease in the business mileage reimbursement rate, according to Forbes. Gas prices have fallen sharply over the last two years, while insurance and maintenance costs have risen. In 2015, the business use rate was 57.5 cents per mile.

The drop is blamed on lower gas prices, but is calculated based on all of the costs associated with owning a car, including repairs and insurance, Forbes noted.

Most employers choose to use the IRS rate when reimbursing employees for travel expenses, but use of the rate is optional: Actual costs or other depreciation methods can be used when filing taxes if the parties so choose, according to the Foothills Sun Gazette.

The 2017 business mileage reimbursement rate applies to cars, vans, pickups, and panel trucks.

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The 2017 business mileage reimbursement rate set by the IRS for tax purposes dropped for the second straight year, to 53.5 cents per mile from the 2016 rate of 54 cents per mile.
2017, mileage, reimbursement, rate
217
2017-46-04
Wednesday, 04 Jan 2017 03:46 PM
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