Business Mileage Reimbursement Rate

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The 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 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, while the Internal Revenue Service (IRS) sets the rate for all others. In general, the GSA rate matches the annual rate set by the IRS, although by law the rate generally cannot be higher than the rate set by the IRS.

Recent reimbursement rates:

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
2008	50.5 cents/mile (IRS) 48.5 cents/mile (GSA)

[edit] Sources

IRS Document 463; Form 2106, Internal Revenue Service, U.S. Dept. of the Treasury (for applicable years); IRS Rev. Proc. 2005-78; IRS Rev. Proc. 2006-49.
Privately Owned Vehicle (POV) Mileage Reimbursement Rates. General Services Administration. Retrieved on 2008-03-07.