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IRS Raises Standard Mileage Rate for Second Half of 2011

In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile. The rate is increasing from 51 cents per mile to 55.5 cents per mile. The medical and moving standard mileage rate is also increasing to 23.5 cents per mile. These revised rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011 (Announcement 2011-40). The mileage rate for use of an automobile as a charitable contribution is fixed by statute and remains at 14 cents. 

The former rates of 51 cents per mile for business use, 19 cents per mile for medical and moving expenses continue to apply to expenses incurred before July 1, 2011.

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