IRS Increases Mileage Reimbursement Rates June 24, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman We had a blog post last week about efforts to get the IRS to increase the mileage reimbursement rates used to calculate deductible expenses, and the inequity between different rates for different purposes. The inequity remains, but the IRS announced yesterday an increase in some mileage reimbursement rates: Business – 58.5 cents per mile (up from 50.5 cents) Medical – 27 cents per mile (up from 19 cents) Nonprofit – 14 cents per mile (unchanged) The new rates become effective July 1, 2008. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy Individual Income and Payroll Taxes