Tax Law Changes

2013 IRS Tax Deduction Rate for Standard Mileage

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Each year the IRS takes a look at the deduction allowed for mileage based upon gas prices, driving expenses, maintenance, registration costs and other costs that are associated with driving. For 2013 the IRS has increased the rates by 1 cent per mile from their 2012 levels for business and medical/moving driving miles.

The amount you can take as a deduction varies depending upon if it is miles driven for business, medical, moving, or driving for charitable causes. Below are the 2013 rates for each that will be effective January 1, 2013.

56.5 Cents Business Miles

When taking business miles driven you can choose to take the actual cost of driving or the mileage rate. If the car you drive for business gets great mileage and has low repair costs then it is likely that taking the mileage deduction would be more beneficial.

24 Cents for Medical or Moving Miles

Miles for medical driving can be taken if you qualify for taking the medical expense tax deduction. If you do not meet the minimum requirements based on AGI, then you will not be allowed to deduct these miles (you will instead be taking the standard deduction).

To claim for moving related miles, you must meet the specific IRS requirements for taking the moving deduction. The move must be for a job that is in the same field of work and meets the mileage test from your old place of work.

14 cents for Charitable Driving Miles

If you are driving in service of a charitable organization, then a mileage rate of 14 cents per mile can be deducted.

Historical Overview of Mileage Rates in Cents

Date
Business
Change
Medical & Moving
Change
Charity
Change

2013

56.5
2%
24
4%
14
0%
2012
55.5
0%
23
-2%
14
0%
7/1/11-12/31/11
55.5
9%
23.5
24%
14
0%
1/1/11-6/60/11
51
2%
19
15%
14
0%
2010
50
-9%
16.5
-31%
14
0%
2009
55
-6%
24
-11%
14
0%
7/1/08-12/31/08
58.5
16%
27
42%
14
0%
1/1/08-6/30/08
50.5
4%
19
-5%
14
0%
2007
48.5
9%
20
11%
14
0%
2006
44.5
-8%
18
-18%
14
0%
9/1-05-12/31/05
48.5
20%
22
47%
14
0%
1/1/05-8/31/05
40.5
8%
15
7%
14
0%
2004
37.5
14
14
0%

This post was published on November 21, 2012

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