New Standard Mileage Rates for 2019

In December 2018, Washington D.C. embraced the Holiday spirit with a federal tax update, resulting in an increase to standard mileage rates and presumably many happy drivers. This marks the second year in a row that the federal government has increased rates for mileage deductions and reimbursements used by taxpayers.

The IRS standard mileage rates for the use of a vehicle (including cars, pickups, vans or panel trucks) in 2018 were:

  • 54.5 cents for every mile of business travel driven
  • 18 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The standard mileage rates starting on January 1, 2019 are as follows:

  • 58 cents for every mile of business travel driven
  • 20 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Standard mileage rates aren’t the only vehicle expense adjustments included in the Tax Cuts and Jobs Act though; miscellaneous deductions subject to the 2% adjusted gross income limitation are no longer available to individual taxpayers. Thus, itemized claims on unreimbursed employee travel expenses cannot be deducted. It is important for taxpayers to note that the business standard mileage rate cannot be used where MACRS depreciation amounts are taken or after claiming a Section 179 deduction for a vehicle. Further, the business standard mileage rate cannot be applied to more than four vehicles at the same time.

According to the IRS News Release, the standard mileage rate for business use is determined through an annual study of fixed and variable costs of vehicle operation, although the rate for medical and moving purposes is established on variable costs alone. If you have any questions regarding the implications of vehicle expense adjustments or mileage rates, please contact your local Schneider Downs tax associate.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
CARES Act, Tax BY Austin Nace
Disappointing News for Employers: Employee Retention Credit Ends Before Fourth Quarter of 2021
Welcome News for the Trucking Industry - Clarification of 100% Meals and Entertainment Deduction for Per Diems
Build Back Better Tax Legislation Update – International Tax Changes
IRS Joins Forces to Combat Fraud Against Charitable Organizations
Higher Estate Tax Exemption Amount for 2022
Michael Jackson vs. Kenny Pickett
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×