Effective January 1, 2019, the business standard mileage rate for use of a car (including vans, pickup trucks, and panel trucks) increases from $0.545 to $0.580 and the rate for medical and relocation increases from $0.180 to $0.20. Mileage related to charity is set by law and remains at $0.140 per mile. (IR-2018-251.)

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 incurred after December 31, 2017, except members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details, see Notice-2019-02.

Note that the business standard mileage rate may not be used (1) after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), (2) after claiming the IRC Section 179 deduction for that vehicle, (3) after claiming depreciation using a method other than straight-line for the estimated useful life, or (4) to compute the deductible expenses for more than four vehicles used simultaneously. (Revenue Procedure 2010-51, IRB 883.)

For the rates and limits applicable in 2018, see our special report.

Summary of mileage rates — 2019 compared to 2018

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