As featured in The Wall Street Journal, Money Magazine, and more!

Deduct Your Miles at 58.5 Cents Each

This article was written by in Taxes. 12 comments.

The Internal Revenue Service is recognizing the increasing costs of transportation and has revised the rate that taxpayers can use for deducting business-related travel expenses. For miles driven between July 1 and December 31, 2008, the new rate is 58.5 cents per mile, up 8 cents from the rate used for the first half of this year.

I would expect businesses that reimburse their employees for miles driven will follow suit.

This method for deducting travel expenses from travel is only one option. If you like, you could track all of your travel expenses, including gasoline and tolls, but it’s much simpler to keep track of the miles you drive and use the rate determined by the IRS.

IRS Increases Mileage Rates through Dec. 31, 2008, Internal Revenue Service, June 23, 2008.

Updated June 20, 2014 and originally published June 24, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

Email Email Print Print
About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 4 comments… read them below or add one }

avatar matty dread

private employers don’t have to re-imburse at the federal amount, it is just a guideline, is that correct?

i have always been a little confused about that…

I think only the government is REQUIRED to reimburse at their posted rate, correct? (and self employed can use this rate to deduct their business miles for tax purposes)

Reply to this comment

avatar Luke Landes

Matty: You’re right — private employers aren’t required to follow the IRS mileage rate but many large employers do.

Reply to this comment

avatar Richard

If I own my own small business, can I deduct miles from my taxes at this rate as well?

Reply to this comment

avatar Kevin Waldron

Thats nice, but at the rate costs are going up private business can’t keep up. My wife’s workplace couldn’t offer her a comparable package because they were locked into a rate with the county.

Reply to this comment

Leave a Comment

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.

Notify me of followup comments via e-mail. You can also subscribe without commenting.