2017 Mileage and Social Security Wage Base
Effective January 1, 2017, the business standard mileage rate (including vans, pickup trucks, and panel trucks) decreases from
$0.540 per mile to $0.535 while the rate for medical and relocation decreases from $0.190 per mile to $0.170. Mileage related to charity
is set by statute and remains at $0.140 per mile. Note that the business standard mileage rate may not be used(1) after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), (2) after claiming the IRC §179 deduction for that vehicle, (3) after claiming depreciation using a method other than straight-line for the estimated useful life, or (4) to compute the deductible expenses for more than four vehicles used simultaneously. (Rev. Proc. 2010-51, IRB 883)
The Social Security wage base increases to $127,200 in 2017 - up by $8,700 from the 2016 amount. The Medicare tax rate for 2017 remains at 1.45% of all covered earnings for employers and employees; however, for wages in excess of $200,000, the additional Medicare tax of 0.9% applies to earned income of more than $200,000 ($250,000 for married couples filing joint). While employers are required to withhold the additional 0.9% on covered wages in excess of $200,000, there is no employer matching contribution.