IRS Increases Mileage Rate to 58.5 Cents!

Posted by The Feds on June 24, 2008

If you deduct the cost of operating your car from your taxes, then the IRS is offering good news. Following increasing gas prices and other operating costs, the IRS has raised the optional deductible rate — the amount per business mile traveled that you can deduct in lieu of tracking your actual operating costs — 8 cents to a total of 58.5 cents per mile.

This rate will be in effect for all business miles traveled from July 1, 2008 through December 31, 2008. Other mileage rates have increased as well. Here’s the full chart:

Purpose Rates 1/1 through 6/30/08 Rates 7/1 through 12/31/08
Business 50.5 58.5
Medical/Moving 19 27
Charitable 14 14

There’s more good news. Many companies use the IRS’s deduction rate for determining how much to reimburse employees for business-related travel. If you expect to be traveling for your employer in the second half of this year, you’ll be able to reclaim more of your travel expenses.

June 24, 2008 | Filed Under Rules and Regulations 

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