Each year, the Internal Revenue Service (IRS) sets standard mileage rates for business based on an annual study of fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil.
Beginning on Jan. 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 2 cents from the rate for 2018
- 14 cents per mile driven in service of charitable organizations, the same as 2018
Here are a few things to keep in mind when considering whether deductions apply to you:
- Business miles are miles you’ve driven specifically for business.
- Business miles are NOT miles driven between home and your workplace. Those are commuting miles and are not deductible.
It is important to note that under the Tax Cuts and Jobs Act (TCJA), 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.
If you plan to claim a deduction for the business use of a vehicle, you must keep a detailed record or log of business miles driven in order to substantiate your deduction.
For additional information on IRS standard mileage rates, click here.