New Standard Mileage Rate for 2010

Every year, the Internal Revenue Service releases an optional standard mileage rate. Employers often use this standard to calculate the amount they will reimburse employees for using a personal vehicle in the scope of their employment.

Even if employers supply their own vehicles, they can apply this rate to calculate the allowable deduction for the business use of a vehicle for Federal income tax purposes. As of January 1, 2010, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) was set to 50 cents per mile for business miles driven. Reflecting generally lower transportation costs, the rate is a 5-cent reduction from last year’s rate.