What the 2019 IRS Mileage Rate Was and Why It Matters
The IRS mileage reimbursement rate for 2019 was 58 cents per mile driven for business purposes. This rate, released in late 2018, is used by taxpayers who elect to calculate business driving costs using the standard mileage rate method instead of tracking actual expenses. It is also the default rate many employers adopt for reimbursing employee business travel. Understanding how this rate applies to deductions, reimbursements, and recordkeeping helps ensure compliance and accurate reporting.
Standard Mileage Rate Explained
The standard mileage rate is a set per-mile amount the IRS allows taxpayers to use to calculate deductible vehicle expenses without tracking every actual cost. For each business mile driven, the taxpayer multiplies miles by the applicable rate. The method includes costs such as fuel, maintenance, depreciation, and insurance indirectly through the per-mile rate. The standard rate is updated annually based on forecasts of annual driving costs, so the 2019 rate reflects expected expenses for that year.
How the Rate Is Determined
The IRS typically announces the next year’s standard mileage rate in late autumn of the prior year. The rate incorporates changes in fuel prices, insurance, and depreciation projections. For 2019, the announced rate of 58 cents per mile was designed to cover the average cost of operating a vehicle for business during that year.
Calculating Deductions and Reimbursements
To calculate a business travel deduction or reimbursement using the 2019 rate, multiply the total business miles driven by 0.58. Personal miles are not included in this calculation and cannot be deducted. Employees using this method for employer reimbursement should confirm their organization’s policy, as some employers may use a different rate or require actual expense accounting. Accurate mileage logs with dates, destinations, and business purpose are essential for substantiation.
Standard vs. Actual Expense Method
Taxpayers can choose between the standard mileage rate and the actual expense method. The actual method involves tracking and deducting real costs such as gas, repairs, lease payments, and depreciation. The standard method is simpler and often more advantageous in the early years of a vehicle’s life, when depreciation is highest. Switching between methods is generally allowed but must be applied consistently once chosen for a vehicle.
Comparison at a Glance
| Item | Standard Mileage Method (2019) | Actual Expense Method |
|---|---|---|
| Rate used | 58 cents per mile | Real costs incurred |
| Depreciation | Included in rate | Tracked separately |
| Simplicity | Easier recordkeeping | More detailed tracking required |
| Best for | Newer vehicles, higher depreciation | Vehicles with high actual costs |
Who Can Use the 2019 Rate
Self-employed individuals, independent contractors, and eligible employees may use the standard mileage rate for business travel on their tax returns, subject to eligibility rules. The rate generally applies only to vehicles owned or leased by the taxpayer. It cannot be used for vehicles under a fleet-average or other specified business mileage rules. Organizations that reimburse employees often adopt the IRS rate because it is straightforward and familiar to both employers and employees.
Recordkeeping and Documentation
To substantiate mileage claims, the IRS requires detailed records for each trip. Information should include the date, destination, business purpose, and start and end odometer readings. Both digital apps and paper logs are acceptable if they capture this information consistently. Well-maintained records support compliance and simplify any future audit or employer reimbursement review.
Frequently Asked Questions
- Can I switch between the standard and actual methods? Yes, but only under IRS rules and with consistent application for the vehicle.
- Does the 58 cents rate cover personal miles? No, only business miles qualify for the rate.
- Is the 2019 rate still usable today? Taxpayers filing returns for 2019 may still use this rate when claiming deductions for that year.
- Can employers use a different rate than the IRS? Yes, employers may choose other reimbursement methods, but using the IRS rate is common for simplicity.
- What should I do if I already filed without the correct mileage? If it has not been finalized by the IRS, an amended return may be filed to correct the amount.
Key Takeaways
- The IRS standard mileage rate for 2019 was 58 cents per mile.
- Use the rate by multiplying business miles only, excluding personal travel.
- Records should clearly document dates, destinations, purposes, and odometer readings.
- Taxpayers can choose between standard mileage and actual expenses based on their situation.
- Employers often adopt this rate for employee reimbursements because it is simple and widely recognized.