In Notice 2019-2, the Internal Revenue Service released the optional standard mileage rates for calendar year 2019. In most instances, taxpayers may use these rates to compute the tax deductible costs of operating motor vehicles for:
- charitable purposes
Some members of the military may also use these rates to compute their moving expense deductions (the only taxpayers able to deduct moving expenses after the Tax Cuts and Jobs Act enacted last December).
2019 Standard Mileage Rates
The standard mileage rates for 2019 are:
- 58 cents per mile for business uses
- 20 cents per mile for medical uses
- 14 cents per mile for charitable uses
Taxpayers may use these rates, in lieu of their actual expenses, to calculate their tax deductions for business, medical or charitable use of their own vehicles.
FAVR Allowance for 2019
For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles placed in service after 2018 is:
- $50,400 for passenger automobiles
- $50,400 for trucks and vans
Employers can use a FAVR allowance to reimburse employees who use their own vehicles for the employer’s business.
2019 Mileage Rate for Moving Expenses
The standard mileage rate for the moving expense deduction is 20 cents per mile. To claim this deduction, the taxpayer must be:
- a member of the Armed Forces of the United States
- on active military duty
- moving under a military order and incident to a permanent change of station
As noted above, the Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for all other taxpayers until 2026.
Unreimbursed Employee Travel Expenses
For most taxpayers, the Tax Cuts and Jobs Act suspended through December 31, 2025, the miscellaneous itemized deduction for unreimbursed employee travel expenses. However, certain taxpayers may still claim an above-the-line deduction for these expenses. These taxpayers include:
- members of a reserve component of the U.S. Armed Forces
- state or local government officials paid on a fee basis
- performing artists with relatively low incomes