2019 Standard Mileage Rates

The optional standard mileage rates for business use of a vehicle will increase significantly in 2019. For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents in 2018.

Taxpayers can generally use the optional standard mileage rates to calculate the deductible costs of operating an automobile. Because the law known as the Tax Cuts and Jobs Act (TCJA), suspended the miscellaneous itemized deduction for unreimbursed employee business expenses from 2018 to 2025, the rate can’t be used for employees in some cases, but business owners can still elect to use the mileage rate for deduction purposes or as a rate to reimburse employees for their use of their personal vehicles for business purposes. The rate can be used as the maximum amount an employer can reimburse an employee for operating an auto for business purposes without substantiating the actual expense incurred.

TCJA repealed the moving expense deduction for individual taxpayers from 2018 to 2025, except for U.S. armed forces members on active duty.

Other mileage rates in effect for 2019 include medical mileage – 20 cents and charitable related mileage – 14 cents.

Have questions about auto deductions and what you can take on your return? Give us a call and we’ll be glad to work you through the rules.