The IRS announced an increase in the optional standard mileage rates for the final six months of 2008 in recognition of rising gasoline prices.
Taxpayers may use the optional standard rates in lieu of tracking actual costs to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
| Purpose |
Rate
January 1 - June 30, 2008 |
Rate
July 1 - December 31, 2008 |
| Business |
50.5¢ |
58.5¢ |
| Medical/Moving |
19¢ |
27¢ |
| Charitable |
14¢ |
14¢ |
The allowable rate for 2007 was 48.5 cents per mile (for business purposes). |
