tax

IRS Mileage Rate 2017: Rates, Rules, and How to Use Them

The 2017 IRS mileage rates were set to support standard mileage method calculations for business, medical, and moving purposes. The primary rates included 53.5 cents per mile fo...

Mara Ellison
IRS Mileage Rate 2017: Rates, Rules, and How to Use Them

Summary of 2017 IRS Mileage Rates

The 2017 IRS mileage rates were set to support standard mileage method calculations for business, medical, and moving purposes. The primary rates included 53.5 cents per mile for business, 17 cents per mile for medical and military moves, and 23 cents per mile for charitable driving. These rates applied to miles driven during 2017 and remained in effect for 2016 tax returns, while taxpayers driving in 2018 used different rates. Below are the key verified 2017 rates and how they were used.

Standard Mileage Method Overview

The standard mileage method lets taxpayers calculate vehicle expenses using set rates per mile instead of tracking every actual cost. This approach is allowed by the IRS for business, medical, military relocation, and charitable travel under specific conditions. Eligible vehicles include cars, vans, pickups, and panel trucks, and taxpayers must choose the standard mileage method in the first year the vehicle is used for a qualifying purpose. Once elected for a vehicle, switching to actual costs later may be restricted.

Key Rules and Eligibility

  • Business: Must be regular and essential to your trade or business; commuting between home and a regular workplace does not qualify.
  • Medical: Must be primarily for care to diagnose, cure, mitigate, or prevent illness or injury; includes costs for patient and companion travel.
  • Military Moves: Applies to permanent change of station orders under military or space-related appointments.
  • Charitable: Limited to unreimbursed miles for services directly to qualified organizations at 14 cents per mile in all years, including 2017.

2017 IRS Mileage Rates in Detail

Each qualifying category had a distinct per-mile rate for 2017. It is important to use the rate that matches the purpose of the drive and the tax year in which the miles were driven. Rates are set annually, so miles driven in 2017 were valued differently from miles driven in 2016 or 2018. Charitable miles carry a separate fixed rate unrelated to the annual rate changes.

Calculation and Documentation Tips

To compute your deduction or reimbursement, multiply the total qualifying miles by the applicable rate for that category and year. Maintain logs showing date, destination, purpose, and start/end odometer readings to substantiate your claims. Receipts for parking and tolls are separately deductible for business and medical trips when using the standard method. Accurate records help avoid questions from the IRS and ensure correct calculations.

Category Rate (2017) Notes
Business 53.5 cents per mile Eligible business miles driven in 2017 only
Medical and Military Moves 17 cents per mile Covers medical care and permanent military relocations
Charitable 14 cents per mile (not 2017 rate dependent) Unreimbursed miles directly to qualified organizations

Tracking Mileage for 2017 Returns

When preparing 2017 tax returns, use the 2017 IRS mileage rates to determine your deduction if you chose the standard mileage method. It is critical to apply the rates from the year the miles were driven, not from earlier or later years. Many taxpayers keep a mileage log that records odometer readings at the start and end of each trip, along with the reason for travel. These logs, together with receipts and a clear purpose for each drive, form the documentation the IRS may request.

Switching Between Methods

Taxpayers who opted for the standard mileage method in the first year can later switch to the actual cost method, but the timing and eligibility depend on business use and vehicle ownership. For example, vehicles used more than 50 percent for business may qualify, and rules differ slightly for cars versus other vehicles. If you plan to claim depreciation or take the Section 179 deduction on a vehicle used for business, you may be required to use the actual cost method instead of standard mileage. Consulting tax guidance for your specific situation can clarify which method maximizes your benefit.

Common Misconceptions

Not all driving is eligible for the standard mileage rate. Personal commuting, travel for hobby activities, and non-qualified moves do not qualify. Reimbursement from an employer may follow different rules than IRS deductions, so it is important to distinguish between taxable income and deductible expenses. Likewise, ridesharing or delivery earnings are typically subject to different treatment and should not be mixed with standard mileage deductions unless the trips meet the qualifying purpose rules.

Related Reading

More pages in this topic cluster.

Florida Department of Revenue Sales Tax Registration: A Comprehensive Guide

Businesses that sell, lease, or rent taxable goods or services in Florida are generally required to register with the Florida Department of Revenue (DOR) for sales and use tax p...

Read next
Canada vs US Tax Rate: A Comprehensive Comparison of Personal and Corporate Rates

Canada and the United States both fund public services through personal and corporate taxes, but their structures differ in ways that affect take-home pay and competitiveness. I...

Read next
How to Get a Florida Sales Tax Number (Step-by-Step)

A Florida seller’s permit (sales tax number) is required if you sell tangible personal property or certain services in Florida. This permit allows you to collect sales tax fro...

Read next