# Notice 2018-3: 2018 Standard Mileage Rates > Federal · IRS notices · In force URL: https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_3 ## Section - **Citation:** Notice 2018-3 - **Heading:** 2018 Standard Mileage Rates - **Jurisdiction:** Federal - **Kind:** IRS notices - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Internal Revenue Bulletin / IRB 2018 / Notice / Notice 2018-3 ## Text 2018 Standard Mileage Rates Notice 2018-03 SECTION 1. PURPOSE This notice provides the optional 2018 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan. SECTION 2. BACKGROUND Rev. Proc. 2010-51, 2010-51 I.R.B. 883, provides rules for computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes, and for substantiating, under § 274(d) of the Internal Revenue Code and § 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary business expenses of local transportation or travel away from home. Taxpayers using the standard mileage rates must comply with Rev. Proc. 2010-51. However, a taxpayer is not required to use the substantiation methods described in Rev. Proc. 2010-51, but - 2 - instead may substantiate using actual allowable expense amounts if the taxpayer maintains adequate records or other sufficient evidence. An independent contractor conducts an annual study for the Internal Revenue Service of the fixed and variable costs of operating an automobile to determine the standard mileage rates for business, medical, and moving use reflected in this notice. The standard mileage rate for charitable use is set by § 170(i). SECTION 3. STANDARD MILEAGE RATES The standard mileage rate for transportation or travel expenses is 54.5 cents per mile for all miles of business use (business standard mileage rate). See section 4 of Rev. Proc. 2010-51 to determine the standard mileage rates for business, medical, and moving use reflected in this notice. The standard mileage rate for charitable use is set by § 170(i). SECTION 3. STANDARD MILEAGE RATES The standard mileage rate for transportation or travel expenses is 54.5 cents per mile for all miles of business use (business standard mileage rate). See section 4 of Rev. Proc. 2010-51. The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170. See section 5 of Rev. Proc. 2010-51. The standard mileage rate is 18 cents per mile for use of an automobile (1) for medical care described in § 213, or (2) as part of a move for which the expenses are deductible under § 217. See section 5 of Rev. Proc. 2010-51. SECTION 4. BASIS REDUCTION AMOUNT For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 22 cents per mile for 2014, 24 cents per mile for 2015, 24 cents per mile for 2016, 25 cents per mile for 2017, and 25 cents per mile for 2018. See section 4.04 of Rev. Proc. 2010-51. SECTION 5. MAXIMUM STANDARD AUTOMOBILE COST - 3 - For purposes of computing the allowance under a FAVR plan, the standard automobile cost may not exceed $27,300 for automobiles (excluding trucks and vans) or $31,000 for trucks and vans. See section 6.02(6) of Rev. Proc. 2010-51. SECTION 6. EFFECTIVE DATE This notice is effective for (1) deductible transportation expenses paid or incurred on or after January 1, 2018, and (2) mileage allowances or reimbursements paid to an employee or to a charitable volunteer (a) on or after January 1, 2018, and (b) for transportation expenses the employee or charitable volunteer pays or incurs on or after January 1, 2018. SECTION 7. EFFECT ON OTHER DOCUMENTS Notice 2016-79 is superseded. DRAFTING INFORMATION The principal author of this notice is Bernard P , 2018, and (2) mileage allowances or reimbursements paid to an employee or to a charitable volunteer (a) on or after January 1, 2018, and (b) for transportation expenses the employee or charitable volunteer pays or incurs on or after January 1, 2018. SECTION 7. EFFECT ON OTHER DOCUMENTS Notice 2016-79 is superseded. DRAFTING INFORMATION The principal author of this notice is Bernard P. Harvey of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information on this notice contact Bernard P. Harvey on (202) 317-7005 (not a toll-free call). ## Nearby sections - [Notice 2018-2 Updated Mortality Improvement Rates and Static Mortality Tables for Defined Benefit Pension Plans for 2019](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_2.md) - [Notice 2018-3 2018 Standard Mileage Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_3.md) - [Notice 2018-5 Extension of Transition Rules from Notice 2010–46](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_5.md) - [Notice 2018-6 FAITH TRANSITION RELIEF UNDER I.R.C. SECTIONS 6721 AND 6722 FOR REPORTING REQUIRED BY I.R.C. SECTIONS 6055 AND 6056 FOR 2017](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_6.md) - [Notice 2018-7 Guidance under Section 965](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_7.md) - [Notice 2018-8 Revised Timeline and Other Guidance Regarding the Implementation of New Section 1446(f)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_8.md) - [Notice 2018-10 Medical Device Excise Tax Deposit Penalty Relief](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_10.md) - [Notice 2018-11 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_11.md) - [Notice 2018-12 Notice of Transition Relief Regarding the Application of Section 223 to Certain Health Plans Providing Benefits for Male Sterilization or Male Contraceptives](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_12.md) - [Notice 2018-13 Additional Guidance Under Section 965 and Guidance Under Sections 863 and 6038 in Connection with the Repeal of Section 958(b)(4)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_13.md) - [Notice 2018-14 Guidance on Withholding Rules](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_14.md) - [Notice 2018-15 New Clean Renewable Energy Bonds](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_15.md) - [Notice 2018-16 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_16.md) - [Notice 2018-17 Low-Income Housing Credit Disaster Relief for the Commonwealth of Puerto Rico](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_17.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2018_3. Check the current official text before relying on it. Not legal advice.