The IRS issued 2019 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Small businesses will see a rate increase and a Tax Cuts and Jobs Act (TCJA) change.
Beginning on Jan. 1, 2019, the standard mileage rates will be:
- 58 cents per mile driven for business, up 3.5 cents from the 2018 rate.
- 20 cents per mile driven for medical or moving purposes, up 2 cents from the 2018 rate.
- 14 cents per mile driven in service of charitable organizations. Set by statute, this rate doesn’t change.
Under the TCJA, no claim is possible for a miscellaneous itemized deduction on unreimbursed employee travel expenses, including employee moving expenses. However, the standard mileage rate can still be applied to miles employees drive for business using their personal vehicles, provided detailed records are kept. There are also some situations where the standard mileage rate can’t be used.