New IRS Rate for Business Mileage 2019

The IRS has increased the standard rate that employers can use to calculate deductible expenses for operating company cars and trucks. The new rate, raised by 3.5 cents per mile to 58 cents per mile, will be effective Jan. 1,2019. Businesses can use this amount—also called the safe harbor rate—to pay tax-free reimbursements to employees who use their own vehicles for business.