---
title: IRS Announces 2012 Standard Mileage Rates
description: The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes.
---

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## [IRS Announces 2012 Standard Mileage Rates](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/bid/69434/IRS-Announces-2012-Standard-Mileage-Rates)

[Posted on Fri, Dec 16, 2011](https://promotion-payroll-hr.pinnaclehro.com/human-resources-articles/author/michael-allen)

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The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes.

Beginning Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 55.5 cents per mile for business miles driven. The rate for business miles driven is unchanged from the mid-year adjustment that took effect on July 1, 2011.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, conducted by Runzheimer International.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in [Rev. Proc. 2010-51](http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTExMjA5LjQzNjcyMjEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTExMjA5LjQzNjcyMjEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjgwOTA5NCZlbWFpbGlkPXNiZWFyZHNsZXlAY2FsY2hhbWJlci5jb20mdXNlcmlkPXNiZWFyZHNsZXlAY2FsY2hhbWJlci5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&127&&&http://www.irs.gov/pub/irs-drop/rp-10-51.pdf).

[Notice 2012-01](http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTExMjA5LjQzNjcyMjEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTExMjA5LjQzNjcyMjEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjgwOTA5NCZlbWFpbGlkPXNiZWFyZHNsZXlAY2FsY2hhbWJlci5jb20mdXNlcmlkPXNiZWFyZHNsZXlAY2FsY2hhbWJlci5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&http://www.irs.gov/pub/irs-drop/n-12-01.pdf) contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

*Internal Revenue Service* 

By: HRC/Cal Chamber

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