Each year, IRS adjusts more than 40 tax provisions depending on the inflation rate and changes to the cost of living. This applies to Mileage Rates for that given particular year as well. The agency mostly releases the rates at the end of each year with a notice shared publicly on the agency’s website. The Notice 2019-02 provided the 2019 standard mileage rates which will cover the rates from January 1st to end of the year.
There are three main categories to the standard mileage rates. Read Notice 2019-02 here.
- Medical or moving purposes
- Service of charitable organizations
Each of these categories will determine how many cents you can claim per mile. However, keep in mind that these are the standard mileage rates. The amount taxpayers should use in calculating the reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard vehicle cost that may be used in measuring the allowance under a fixed and changeable (FAVR) rate.
Here are the standard mileage rates for the year 2019 that is released with the Notice 2019-02.
- 58 cents per mile for business miles driven
- 54.5 cents in 2018
- 20 cents per mile driven for moving or medical purposes
- 18 cents in 2018
- 14 cents per mile driven in service for charitable organizations
- 14 cents in 2018.
Since there hasn’t been a change to the rate for charitable organizations from 2018, we expect an increase in 2020. Also, definitely there will be some changes to both business and medical/moving rates in 2020. The IRS is likely to release this with the next year’s notice. We will keep you updated as soon as it is released, in the meantime, stay tuned in to our website!