The IRS issued Notice 2019-02, announcing the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 58 cents per mile for business miles driven, up 3.5 cents from the 2018 rate
- 20 cents per mile driven for medical* or moving purposes, up from 18 cents for 2018
- 14 cents per mile driven in service of charitable organizations
The business, medical and moving mileage rates all increased from 2018.
The charitable rate is set by statute and remains unchanged.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
*Medical mileage is an eligible medical expense as long as the primary purpose of the travel is for and essential to obtaining medical care. This means that the main purpose of travel is to seek medical care.