January - February 2019

mileage rate The IRS has issued the 2019 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning Jan. 1, 2019, the standard mileage rates for the use of a vehicle will be:

  • 58 cents for every mile of business travel driven, up 3.5 cents from 2018;
  • 20 cents per mile for medical or moving purposes, up 2 cents from 2018; and
  • 14 cents per mile driven in service of charitable organizations.

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.

Taxpayers have the option of calculating the actual costs of using their vehicle rather than using standard mileage rates.

To learn more about deducting mileage costs, read Memo #11 – Auto and Other Business Expense Reimbursements.

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