Energy costs have been on the rise, and the IRS has adjusted mileage rates to reflect that. The IRS increased the mileage rate for 2006 to 44.5 cents per mile for the business use of your car. This is an increase over the standard 40.5 cents per mile that applied for most of 2005.
If you used your car to get medical care or to move, you can deduct 18 cents per mile. This rate also was increased over last year's 15 cents per mile.
Taxpayers who used their car to provide charitable services to a qualified charitable organization can still receive credit for their mileage. That rate is 14 cents per mile. A rare exception is made for taxpayers providing Hurricane Katrina relief services. If the organization you were working for was providing relief related to Katrina, the standard mileage rate of 32 cents per mile will apply.
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