What are the standard mileage rates for 2003, 2002, and 2001?

2003

The standard mileage rate for business use of an automobile declined to 36 cents per mile for 2003.

The standard mileage rate for moving or medical reasons declined to 12 cents per mile for 2003.

The standard mileage rate for charitable contributions is unchanged at 14 cents per mile for 2003.

2002

The standard mileage rate for business use of an automobile was 36.5 cents per mile for 2002.

The standard mileage rate for moving or medical reasons was 13 cents per mile for 2002.

The standard mileage rate for charitable contributions was 14 cents per mile for 2002.

2001

The standard mileage rate for business use of an automobile was 34.5 cents per mile for 2001.

The standard mileage rate for moving or medical reasons was 12 cents per mile for 2001.

The standard mileage rate for charitable contributions was 14 cents per mile for 2001.

The rates for 2004 will be announced in a new revenue procedure updating revenue procedure 2002-61 and should be issued in early fall 2003.

References:

• Publication 463, Travel, Entertainment, and Gift Expenses
• Tax Topic 510, Business Use of Car
• Publication 521 , Moving Expenses
• Publication 502, Medical and Dental Expenses

If you lease a vehicle, can you deduct the cost of the lease payments plus the standard mileage rate?

No, if you lease a car you use in business, you may use either the standard mileage rate or claim actual expenses, which would include lease payments. You cannot use both the standard mileage rate and the lease payments.

References:

• Publication 463, Travel, Entertainment, Gift, and Car Expenses
• Tax Topic 510, Business use of car