IRS Updates Medical and Business Mileage Rates
July 15 , 2008
The increasingly high cost of fuel has not escaped the notice of the IRS. In Announcement
2008-63, the IRS indicated that, effective July 1, 2008, the business and medical
mileage rates are increased through the end of 2008.
The medical mileage rate is for medical-related transportation expenses and is reimbursable
under a Health FSA, HRA or HSA. The business mileage rate is for business-related
travel. The changes are as follows:
- Medical mileage: $0.19 per mile increased to $0.27 per mile
- Business mileage: $0.505 per mile increased to $0.585 per mile
You can find a copy of Announcement 2008-63 at
www.irs.gov/pub/irs-drop/a-08-63.pdf.