IRS Mileage Rate Increase

The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011. The new rates are contained in Announcement 2011-40 (opens a PDF) on the optional standard mileage rates. The revised standard mileage rates for medical and moving 23.5 cents per mile. The mileage rate that applies to the deduction for charitable contributions is still 14 cents per mile.