Standard Mileage Rate Increases by 8 Cents

The IRS has increased the standard mileage rate for taxpayers who drive their cars for business and medical purposes. Starting July 1, 2008, the standard mileage rate will be 58.5 cents per mile for business use and 27 cents per mile for the medical and moving purposes. The IRS adjusted the standard rates "in recognition of recent gasoline price increases," according to the news release.

The standard rate for charitable driving remains unchanged at 14 cents per mile. That rate is set by law under Internal Revenue Code Section 170(i).

More information:

• Deducting car and truck expenses
• 2008 Quick Tax Facts
• IRS Increases Mileage Rates through Dec. 31, 2008 (from IRS.gov)