Beginning Jan. 1,
2006, the standard mileage rates for the use of a car (including vans,
pickups or panel trucks) will be:
44.5 cents per mile for business miles driven;
18 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations, other
than activities related to Hurricane Katrina relief.
The new rate for business miles compares to a rate of 40.5 cents per
mile for the first eight months of 2005. In September, the IRS made a
special one-time adjustment for the last four months of 2005, raising
the rate for business miles to 48.5 cents per mile in response to a
sharp increase in gas prices, which topped $3 a gallon.
“The IRS took the extraordinary step of temporarily increasing the
standard mileage rates in the aftermath of Hurricane Katrina,” IRS
Commissioner Mark W. Everson said. “We promised to continue closely
monitoring the situation. The 2006 mileage rates reflect that gas prices
have dropped.”
The standard mileage rates for business, medical and moving purposes are
based on an annual study of the fixed and variable costs of operating an
auto. Runzheimer International, an independent contractor,
conducted the study for the IRS.
The mileage rate for charitable miles is set by statute.
For the first eight months of 2005, the standard rate for miles driven
for medical or moving purposes was 15 cents per mile, and, except for
special Hurricane Katrina rates, the standard rate for miles driven in
service of a charitable organization was 14 cents per mile.
For the last four months of 2005, the agency raised the standard rate
for miles driven for medical or moving purposes to 22 cents per mile.
The standard rate for charitable miles remained at 14 cents per
mile––except for charitable miles relating to Hurricane Katrina.
Special Rates for Katrina-Related Charitable Miles
Congress this year also approved special rates in connection with miles
driven in service of charities providing Hurricane Katrina relief.
For the period Aug. 25 to Aug. 31, 2005, the rate for miles driven for
charities providing Hurricane Katrina relief is 29 cents, for deduction
purposes, and 40.5 cents, for reimbursement purposes. For the months of
September through December 2005, the special Katrina-related rates are
34 cents for deductions and 48.5 cents for reimbursements.
For 2006, these Katrina-related charitable rates will be 32 cents per
mile for deduction purposes and 44.5 cents per mile for reimbursement
purposes.
Revenue Procedure 2005-78
contains additional information and limitations on the use of the
standard mileage rates.
