Mileage Rate Now $.58 Posted by Association of Vermont Credit Unions on 10:42 AM

Under IRS rules as of January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) changed to:

• 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018
• 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

Under the Tax Cuts and Jobs Act taxpayers cannot claim a miscellaneous itemized deduction for un-reimbursed 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. 

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle. Read more online.