News & Resources

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Federal News

Business Standard Mileage Rate Increases to 58 Cents for 2019

BY: APA Staff | 12/17/18

The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2019, will be 58 cents per mile up, 3.5 cents from the 54.5 cents-per-mile rate in effect during 2018 [Notice 2019-02, released 12-14-18].

The mileage rate may be used to compute the amount to reimburse employees who are using their own cars for business purposes. It may also be used by employers that elect to use the “cents-per-mile” valuation method for purposes of determining the amount that needs to be imputed to an employee's income for personal use of certain company-owned or leased nonluxury vehicles. However, it may not be used by employees in claiming a tax deduction for unreimbursed employee business expenses.

For more information, see the APA Compliance Update, Business Standard Mileage Rate Increases to 58¢ in 2019, which is available on APA’s Compliance Updates web page. Compliance updates are emailed to APA members as a benefit of APA membership.

To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, check out Payroll Source Plus!