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Financial Resources: Mileage Allowance Summary
If a payer pays a mileage allowance instead of reimbursing actual transportation expenses incurred or to be incurred by an employee, the amount of the expense that is deemed substantiated to the payer for an allowance, is the lesser of:
- the amount paid under the mileage allowance; or
- the standard mileage rate multiplied by the number of miles substantiated by the employee.
Key Rates and Figures
The IRS provided the 2008 optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. Beginning January 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
- 50.5 cents per mile for business miles driven;
- 19 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service to a charitable organization.
A mileage allowance is a payment under a reimbursement or other expense allowance arrangement that:
- is paid for ordinary and necessary business expenses incurred, or which the payer reasonably anticipates will be incurred, by an employee for transportation expenses in performing services as an employee;
- is reasonably calculated not to exceed the amount of the expenses or the anticipated expenses; and
- is paid at the standard mileage rate, at a flat rate or stated schedule, or in accordance with any other IRS-specified rate or schedule.
Historical business mileage rates are:
|
2008 |
50.5 |
|
2007 |
48.5 |
|
2006 |
44.5 |
| September-December |
2005 |
48.5 |
| January-August |
2005 |
40.5 |
|
2004 |
37.5 |
|
2003 |
36.0 |
|
2002 |
36.5 |
|
2001 |
34.5 |
|
2000 |
32.5 |
| April-December |
1999 |
31.5 |
| January-March |
1999 |
32.5 |
|
1998 |
32.5 |
|
1997 |
31.5 |
|
1996 |
31.0 |
|
1995 |
30.0 |
|
1994 |
29.0 |
|
1993 |
28.0 |
|
1992 |
27.5 |
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