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IRS Increases Mileage Reimbursement Rate

by Breedlove June 23, 2011

The IRS announced today that the mileage reimbursement rate will increase to 55.5 cents per mile, effective July 1, 2011.


The reimbursement rate is designed to cover the cost of gasoline as well as normal wear and tear on a vehicle.  If you have a household employee who uses her/his own vehicle while on the job, you'll need to use the new rate for reimbursements beginning July 1.


An important reminder: Miles driven to and from the job site are not considered "on the job" and, therefore, are not considered a reimbursement.  Any compensation for miles driven to and from the job site are considered taxable compensation.


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