The Internal Revenue Service announced the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business reasons, as well as for charitable, medical, or moving purposes.

Specifically, per Notice 2019-02, the following standard mileage rates for the use of a vehicle will be effective January 1, 2019:

• 58 cents per mile for business miles driven, up 3.5 cents from 2018;
• 20 cents per mile driven for medical or moving purposes, up 2 cents from 2018; and
• 14 cents per mile driven in service of charitable organizations.

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

It is important to note that under the Tax Cuts and Jobs Act of 2017, most taxpayers cannot claim an itemized deduction for unreimbursed 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.  For more details see Notice-2019-02.