The business mileage reimbursement rate is an optional standard mileage rate used in the

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for purposes of computing the allowable business deduction, for Federal income tax purposes under the

Internal Revenue Code The Internal Revenue Code of 1986 (IRC), is the domestic portion of federal statutory tax law in the United States. It is codified in statute as Title 26 of the United States Code. The IRC is organized topically into subtitles and sections, co ...

, at , for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater. The business mileage reimbursement rate is used by some employers for computing employee reimbursement amounts when an employee operates a motor vehicle not owned by the employer for the employer's business purposes. The

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(GSA) sets the rate for federal jobs. In general, the GSA rate matches the annual rate set by the IRS, although by law the government employee reimbursement rate cannot exceed the mileage rate set by the IRS for business deductions.''Travel and Subsistence Expenses; Mileage Allowances'', 5 U.S.C. 5704(a)(1), Available from
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, Government Printing Office; Accessed January 28, 2009. "In any year in which the Internal Revenue Service establishes a single standard mileage rate for optional use by taxpayers in computing the deductible costs of operating their automobiles for business purposes, the rate per mile established by the Administrator (of the GSA) shall not exceed the single standard mileage rate established by the Internal Revenue Service." Reimbursement by an employer on a per-mile basis is also used in other countries; it offers a similar simplification to payment of subsistence

per diem ''Per diem'' (Latin for "per day" or "for each day") or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer's business. A ...

Reimbursement rates since 1991

References

IRS.gov Standard Mileage Rate OverviewIRS Document 463
Form 2106, Internal Revenue Service, U.S. Dept. of the Treasury (for applicable years); IRS Rev. Proc. 2005–78; IRS Rev. Proc. 2006–49; IRS Rev. Proc. 2008–72. * *Revenue Procedure 2008–72, I.R.B. 2008–50, November 24, 2008, Internal Revenue Service, U.S. Dep't of the Treasury. * * * * *
IRS increases mileage rate for remainder of 2022IRS Mileage Rate 2024IRS Mileage Rate 2025
Internal Revenue Service Corporate taxation Accounting terminology Tax terms {{tax-stub