IRS Increases Mileage Rate to 55.5 Cents per Mile

Posted in Tax News

The IRS has, effective July 1, increased the business mileage deduction to 55.5ยข per mile.

In case you didn’t know, you can also claim mileage deductions for three non-business purposes: transportation to and from medical treatment, relocation, and driving done as part of work with or for a charitable organization.

Here’s the breakdown, according to purpose, for both halves of 2011.

Purpose

Rates 1/1 through 6/30/11

Rates 7/1 through 12/31/11

Business

51

55.5

Medical/Moving

19

23.5

Charitable

14

14