2011 Mileage Rate
IRS sets new standard mileage rate at 51 cents

The Internal Revenue Service (IRS) recently updated the standard amount that can be deducted for mileage. The new rate is 51 cents per mile for business miles driven, as of January 1, 2011.

The IRS's optional standard mileage rate helps businesses compute the deductible costs of operating an automobile, without having to track actual gas costs. Many businesses use this as a point of reference for reimbursing employee mileage.

Note: The business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Instead of using the IRS standard mileage rate, taxpayers also have the option of calculating the actual costs of using their vehicle.

Visit the IRS website for more information on the standard mileage rate.