New IRS Mileage Rate

The IRS has again revised its standard mileage rate for reimbursement purposes for employees using their own vehicles. These rates are lower than in 2009 which is reflective of what the IRS has considered to be lower transportation costs. Effective January 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 50 cents per mile for business miles driven
  • 16.5 cents per mile driven for medical or moving purposes
  •  14 cents per mile driven in service of charitable organizations

What Should You Do?

  • Review your policies to ensure the proper reimbursement rate is being used.
  • If you intend to change the reimbursement rate, notify your employees.
  • Consult with your financial advisors to ensure you are in compliance with applicable tax laws regarding deductions for mileage expenses.
  • Advise your employees that they are responsible for consulting with their financial advisors in the proper method of calculations and deductions for business use of their personal vehicle.


New IRS Mileage Rate
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