Mileage Reimbursement Rates

Mileage reimbursement rates come into play when a vehicle is necessary for doing business. Mileage accounts for not only fuel, but vehicle wear and tear as well. The IRS sets rates each year in response to the current economic levels for deduction on tax documents and company reimbursement rates.

In 2006 the mileage reimbursement rate was 44.5c per mile. This number has jumped 9% for the 2007 fiscal year to 48.5c per mile. This is a large raise and is the highest the rate has ever been.

Anyone that travels for business in their own vehicle is entitled to the IRS mileage reimbursement rates for tax purposes or for compensation from their employer. Rates apply to car, van, pickup truck, and other motor vehicles used for this purpose. Often this applies to salespeople or delivery services that spend a great deal of time in their vehicle to support their job function.

 

 

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