Optional Standard Mileage Rates – after July 1, 2011
Optional Standard Mileage Rates – Announcement 2011-40
This announcement informs taxpayers that the Internal Revenue Service is modifying
Notice 2010-88, 2010-51 I.R.B. 882, by revising the optional standard mileage rates for
computing the deductible costs of operating an automobile for business, medical, or moving
expense purposes and for determining the reimbursed amount of these expenses that is
deemed substantiated. This modification results from recent increases in the price of fuel.
The revised standard mileage rates are:
(1) Business 55.5 cents per mile
(2) Medical and moving 23.5 cents per mile
The mileage rate that applies to the deduction for charitable contributions is fixed under
§ 170(i) of the Internal Revenue Code at 14 cents per mile.
The revised standard mileage rates set forth in this announcement apply to deductible
transportation expenses paid or incurred for business, medical, or moving expense purposes
on or after July 1, 2011, and to mileage allowances that are paid both
(1) to an employee on or after July 1, 2011, and
(2) for transportation expenses paid or incurred by the employee on or
after July 1, 2011.
The standard mileage rates set forth in Notice 2010-88 continue to apply to deductible
transportation expenses paid or incurred for business, medical, or moving expense purposes
before July 1, 2011, and to mileage allowances paid
(1) to an employee before July 1, 2011, or
(2) with respect to transportation expenses paid or incurred by the employee before July 1,
2011.
All other provisions of Notice 2010-88 remain in effect.