2019 Standard Mileage Rates

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2019 Standard Mileage Rates

The new standard mileage rate for 2019 have just been announced as 58 cents per mile. This is an increase from the 2018 rate of 54.5 cents per mile. The standard mileage rate is used to calculate the amount of deductible costs for business use of an automobile including a car, van, pickup truck, or panel truck. This deduction is typically taken on a Schedule C for business owners, Schedule F for farmers, or Schedule A as miscellaneous itemized deductions, for employees.

Due to the changes implemented for the years 2018-2025 by the Tax Cuts and Jobs Act this rate can no longer be used to calculate business automobile expenses that are considered miscellaneous itemized deductions on a Schedule A.

There is a set rate of 14 cents per mile for use of an automobile in performing a service to charity. This deduction, if taken, should be included in the charitable deductions total on Schedule A.

Another change implemented by the Tax Cuts & Jobs Act that affects automobile deductions is the termination of moving expense deductions for individuals. For the years 2018-2025 this deduction is only applicable to active duty members of the armed forces that meet specified requirements, the rate for these expenses being 20 cents per mile.

For more information on the new standard mileage rates for 2019 please visit the IRS website.

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