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IRS Raises Mileage Reimbursement Rate for Vehicle Business Use

Higher fuel prices have prompted the Internal Revenue Service to raise the reimbursement rate for mileage incurred in business use to 55.5 cents, the agency announced.

The IRS said today the change will take effect July 1. The current reimbursement rate for vehicle use is 51 cents. Reimbursement rates for vehicle mileage incurred as a medical or moving expense will rise to 23.5 cents.

The mileage rate for vehicles used as a charitable contribution will remain at 14 cents.

To contact the reporter on this story: Andrew Zajac in Washington at azajac@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

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