Mileage Rate

Business Mileage Reimbursement Rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction, for Federal income tax purposes under the Internal Revenue Code, at 26 U.S.C. § 162, for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater.

The Business Mileage Reimbursement Rate is also used by some employers for computing employee reimbursement amounts when an employee operates an employee-owned automobile for the employer's business purposes. The General Services Administration (GSA) sets the rate for federal jobs. In general, the GSA rate matches the annual rate set by the IRS, although by law the government employee reimbursement rate cannot be higher than the mileage rate set by the IRS for business deductions.

Recent reimbursement rates

Year Rate

1994 29.0 cents/mile

1995 30.0 cents/mile

1996 31.0 cents/mile

1997 31.5 cents/mile

1998 32.5 cents/mile

Jan-Mar 1999 32.5 cents/mile

Apr-Dec 1999 31.0 cents/mile

2000 32.5 cents/mile

2001 34.5 cents/mile

2002 36.5 cents/mile

2003 36.0 cents/mile

2004 37.5 cents/mile

Jan-Aug 2005 40.5 cents/mile

Sep-Dec 2005 48.5 cents/mile

2006 44.5 cents/mile

2007 48.5 cents/mile

Jan-June 2008 50.5 cents/mile

July-Dec 2008 58.5 cents/mile

2009 55.0 cents/mile

2010 50.0 cents/mile

January-June 2011 51.0 cents/mile

July-Dec 2011 55.5 cents/mile