July 5, 2011 12:00 am

IRS Standard Mileage Rate Increased Mid-Year

The IRS announced that due to higher gasoline prices, the standard mileage rates have been increased starting July 1, 2011, by 4.5¢. The last time the IRS increased the rate midyear was 2008.

  • The rate for business driving in the second half of 2011 is 55.5¢ per mile. The rate for business driving in the first half of the year is 51¢ per mile.
  • The rate for medical and moving driving for the second half of 2011 is 23.5¢ per mile, also up 4.5¢ per mile over the 19 cents per mile rate from January 1, through June 30, 2011.

Caution: The rate for charitable driving remains at 14 cents per mile. This is a rate fixed by statute and not by the IRS.

Source: IR-2011-69, June 23, 2011

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Tax Glossary

Earned income

Compensation for performing personal services. You must have earned income for a deductible IRA or to claim the earned income credit.

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