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 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.[1]

Recent reimbursement rates[edit]

YearRate
199127.6 cents/mile
199226.0 cents/mile
199429.0 cents/mile
199530.0 cents/mile
199631.0 cents/mile
199731.5 cents/mile
199832.5 cents/mile
Jan–Mar 199932.5 cents/mile
Apr–Dec 199931.0 cents/mile
200032.5 cents/mile
200134.5 cents/mile
200236.5 cents/mile
200336.0 cents/mile
200437.5 cents/mile
Jan–Aug 200540.5 cents/mile
Sep–Dec 200548.5 cents/mile
200644.5 cents/mile
200748.5 cents/mile
Jan–June 200850.5 cents/mile
July–Dec 200858.5 cents/mile
200955.0 cents/mile
201050.0 cents/mile
January–June 201151.0 cents/mile
July–Dec 201155.5 cents/mile
201255.5 cents/mile
201356.5 cents/mile
201456.0 cents/mile

References[edit]

  1. ^ Travel and Subsistence Expenses; Mileage Allowances, 5 U.S.C. 5704(a)(1), Available from: US Code Main Page, Government Printing Office; Accessed January 28, 2009. "In any year in which the Internal Revenue Service establishes a single standard mileage rate for optional use by taxpayers in computing the deductible costs of operating their automobiles for business purposes, the rate per mile established by the Administrator (of the GSA) shall not exceed the single standard mileage rate established by the Internal Revenue Service."