For the second year in a row, IRS has lowered the standard mileage rate — and that’s not the only reimbursement rate that’s down for 2017.
For 2017, the business mileage rate is 53.5 cents per mile, the IRS said in a notice. That’s down a half a cent from last year’s rate of 54 cents per mile.
As for miles driven for medical or moving purposes, the rate is 17 cents per mile, down from 19 cents in 2016.
As for the charitable mileage rate, it’s been holding steady for years and continues to be 14 cents per mile.
Note: The charitable rate is based on statute, as opposed to the fixed and variable costs of operating a vehicle.
Why the decrease?
In an explanation of the IRS’ move, Donna Koppensteiner, senior VP of business development at Runzheimer, a business vehicle, relocation information and expense management services provider that provides data and analytics to the agency said:
“Factors contributing to the decision on this year’s slight decrease in Safe Harbor reimbursement rate include declining fuel prices, which were largely offset by rising vehicle insurance and maintenance costs.”