2007-2008 mileage rates

Business-mileage rate goes up

This will help taxpayers who use their vehicles on their jobs. There are mileage allowances for those who seek jobs or medical attention or use vehicles in charitable activities.

Every year, the Internal Revenue Service adjusts the standard mileage rate for automobile use for business purposes or charitable activities, or for moving or medical expenses.

For 2007, the standard mileage rates are:

  • 48.5 cents a mile for business use.

  • 20 cents a mile for medical or moving expenses.

  • 14 cents a mile for driving in charitable activities.

For 2008, the standard mileage rates will be:

  • 50.5 cents a mile for business use.

  • 19 cents a mile for medical or moving expenses.

  • 14 cents a mile for driving in charitable activities.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The standard rate for medical and moving purposes is based on the variable costs as determined by the same study.

Runzheimer International, one of the nation's largest travel-management consulting firms, conducted the study for the IRS.

Published Dec. 6, 2007

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