IRS Releases 2008 Mileage Deduction Rates

The standard mileage deduction for business use of a passenger vehicle will increase from 48.5 to 50.5 cents per mile beginning Jan. 1, 2008, according to the Internal Revenue Service (IRS).

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car, van, pickup or panel truck) for business, charitable, medical or moving purposes will be:

• For business purposes -- 50.5 cents per mile (up from 48.5 cents in 2007)

• For medical or moving purposes -- 19 cents per mile (down from 20 cents in 2007)

• For charitable purposes -- 14 cents per mile (unchanged from 2007)

For complete information on the standard mileage rates, taxpayers are urged to read Revenue Procedure 2007-70 (.pdf).