Business Mileage Rate Stays The Same

The IRS has announced that the optional mileage allowance for owned or leased autos – including vans, pickups and panel trucks – will remain at 55.5 cents per mile for business travel after 2011.

The rate is unchanged from the July 1, 2011, midyear adjustment. Employers may use this rate to provide tax-free reimbursement to employees who supply their own autos for business use under an accountable plan. The rate can also be used to value personal use of certain low-cost employer-provided vehicles.

The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction will decrease by 0.5 cent per mile from the July 1, 2011, midyear adjustment to 23 cents per mile.

The rate for using a car for charitable purposes remains at 14 cents per mile.

Read more in Notice 2012-1.

 
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