IRS raises mileage rate

Published 11:51 am Thursday, June 23, 2011

The Internal Revenue Service increased the mileage rate today by 4.5 cents to 55.5 cents a mile for business miles driven from July 1 until Dec. 31 this year.

The rate for the first six months of the year was 51 cents a mile.

The IRS normally updates mileage once a year in the fall. But the new rate acknowledges the increase in gas prices this year.

The mileage figure is used to compute the deductible cost of the business use of a vehicle in lieu of tracking the actual cost.

The rate is also used by many businesses to reimburse employees for mileage.