The IRS standard mileage rates for 2019 are:
- 58 cents per business mile, which is up from 54.5 cents in 2018
- 20 cents per mile for medical or moving, which was previously 18 cents per mile in 2018
- 14 cents per mile for charity purposes, no change from 2018.
What does the 2019 standard mileage rate mean for MileIQ users?
If you use MileIQ, you’re all set. Not only does MileIQ automatically track your drives, but it also calculates the value based on the appropriate standard mileage rate.
Your business drives in 2018 are worth 54.5 cents per mile. MileIQ will automatically calculate your 2019 business drives using 58 cents per mile.
How do you use the standard mileage rate for the mileage deduction?
The standard mileage rate determines how much your mileage deduction is worth. You tally up your business drives for the year and then multiply that by the standard mileage rate.
How does the IRS calculate the 2019 standard mileage rate?
The IRS knows there’s a cost to using a personal car for business reasons and it offers a tax break for this. It uses a variety of factors to determine the standard mileage rate. These factors include:
- Cost of gasoline
- The average cost of maintaining a car
- Average wear-and-tear on a vehicle
- Other factors (the IRS doesn’t disclose the exact factors).
What were the business mileage rates for 2019, 2018 and previous years?
|Year||Rate per Mile||Dates Covered|
|2019||58 cents||1/01/19 - 12/31/19|
|2018||54.5 cents||1/01/18 - 12/31/18|
|2017||53.5 cents||1/01/17 - 12/31/17|
|2016||54 cents||1/01/16 - 12/31/16|
|2015||57.5 cents||1/01/15 - 12/31/15|
|2014||56 cents||1/01/14 - 12/31/14|
|2013||56 cents||1/01/13 - 12/31/13|
|2012||55.5 cents||1/01/12 - 12/31/12|
|2011||55.5 cents||7/01/11 - 12/31/11|
|2011||51 cents||1/01/11 - 6/30/11|
|2010||50 cents||1/01/10 - 12/31/10|
Do I need a mileage log?
Yes, the IRS requires you to keep a mileage log if you deduct your business miles. A mileage-tracking app like MileIQ makes this an easy experience.
Do I still need MileIQ with the new tax law?
Yes, MileIQ can still help you get a major tax deduction if you drive a personal car for business.
Can employees deduct their mileage?
No, W2 employees can no longer deduct mileage. The self-employed can still write off their mileage as a business expense. The change was part of the tax reform bill of 2017.
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.