IRS Increases Rate by One Cent to 56.5

The IRS updates annually the reimbursement mileage rate for an employee’s business use of his or her vehicle.  The rate has increased from 55.5 cents in 2012 to 56.5 cents per mile in 2013.

The government determines the mileage rate by a study of the fixed and variable costs of operating an automobile, including of course gas prices.

For more details on required reimbursements to employees for business purposes, visit IRS.gov. That site includes the statement: “Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.”