Standard mileage rates apply to all automobiles, including cars, SUVs, pickup trucks, vans, and panel trucks. The rates are used to calculate federal income tax deductions when you use your automobile for business, charitable, medical, or moving purposes. The rates replace individual deductions for depreciation (or lease payments if your car is leased), maintenance and repairs, insurance, licensing fees, and gasoline and other consumables. They do not include parking fees and tolls incurred for business driving.

Importantly, standard mileage rates are an optional approach to calculating your federal tax deduction. You can always choose to use actual expenses as long as you maintain adequate documentation of the expenses and retain receipts where required.

Business Use
If you use your automobile for business―whether you are self-employed or an employee―you are allowed a deduction for the unreimbursed cost of operating it. However, you are not allowed a deduction for any portion attributable to personal use, which includes commuting to and from work.

In general, your deduction is equal to the number of business miles incurred during the year multiplied by the standard rate per mile. The new standard mileage rate for business use in 2009 is 55.5 cents per mile, down slightly from 58.5 cents per mile for the second half of 2008―but still up from the 50.5 cents-per-mile rate in effect for the first half of 2008. For 2008 and 2009, the depreciation portion of this rate―which reduces the basis of your car for calculating gains and losses―is 21 cents per mile.

The business mileage rate is adjusted annually based on an independent study of the fixed and variable costs involved in operating an automobile.

You should note that you cannot use this rate if you use five or more automobiles simultaneously, such as in fleet operations. You also cannot use it for an automobile if you:

 depreciate it using the Modified Accelerated Cost Recovery System (MACRS) method,

 claimed a Section 179 deduction for it, or

 use it for hire.

According to the IRS, you gain a number of advantages from using the standard mileage rate rather than actual expenses in calculating your tax deduction. They include the following:

 You don't have to keep a record of your expenses or retain receipts as long as you maintain a record of time, place, business purpose, and number of miles traveled.

 Your automobile is not subject to certain dollar caps or to the special rules that would otherwise apply if your qualified business use doesn't exceed 50 percent.

 You may actually get a bigger deduction using the standard rate, particularly if you own "a thrifty, high-mileage model."

Moving or Medical Use
The cost of operating your automobile to obtain medical care or as part of certain moves related to work at a new job or business location is deductible for federal tax purposes.

The new standard mileage rate for 2009 is 24 cents per mile, down from 27 cents per mile for the second half of 2008―but still up from the 19 cents-per-mile rate applicable for the first half of 2008. As was the case with the business rate, this rate is also adjusted annually based on an independent study of the cost of operating an automobile.

Charitable Use
If you use your automobile while providing unpaid services to a charitable institution, you can deduct your related costs. The applicable charitable rate used to compute the federal charitable contribution deduction is set by statute and remains at 14 cents per mile.