Good News for the 2019 and 2020 Mileage Deductions
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 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, and
- 14 cents per mile driven in service of charitable organizations.
The good news for individuals who claim the federal mileage rate deduction for business use of a vehicle.
For 2019, the new mileage rate is 58 cents per mile, up 3.5 cents from 2018, based on the overall higher prices for gasoline tracked during the year. The last time the rate was this high was in the second half of 2008. Of course, we’d rather see the gas prices drop at least $1/gallon, but we’ll take it.
The new rate for operating a vehicle for medical or moving purposes has been set at 20 cents per mile, up 2 cents from 2018, while the rate for operating a vehicle for charitable purposes was set at 14 cents per mile.
Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For 2020 – The standard Mileage rates for business, medical and moving is 57.5 cent per mile for Business, 17 cents per mile for Medical or Moving and 14 cents per mile for Charitable organizations.