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. The reimbursement rate for vehicle mileage incurred as a medical or moving expense will rise to 23.5 cents, up from 19 cents. The mileage rate for vehicles used as a charitable contribution is fixed by law and remains at 14 cents a mile.