The business mileage reimbursement rate for 2019 increased 3.5 cents to 58 cents on Jan. 1 after two years of minimal change, the Internal Revenue Service announced late last year.
For 2018, the I.R.S. increased the rate 1 cent to 54.5 cents. For 2017, the rate fell 0.5 cent.
For 2019, the agency also increased the rate for medical or moving purposes by 2 cents to 20 cents per mile. The rate for miles driven in service of charitable organizations remained at 14 cents.
Under President Trump's Tax Cuts and Jobs Act, taxpayers can't claim a miscellaneous itemized deduction for unreimbursed employee travel expenses or claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station, according to a release.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. Taxpayers can't claim the standard rate after using depreciation methods under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction.