The Car and Truck Fleet and Leasing Management Magazine

IRS Announces 2006 Standard Mileage Rates

December 6, 2005

WASHINGTON, D.C. — The Internal Revenue Service has issued the 2006 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes. Beginning Jan. 1, 2006, the standard mileage rates for the use of a car, van, pickup, or panel truck will be:
  • 44.5 cents per mile for business miles driven.
  • 18 cents per mile driven for medical or moving purposes.
  • 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 standard mileage rates for business, medical, and moving purposes are based on an annual study conducted by Runzheimer International of the fixed and variable costs of operating an automobile. The mileage rate for charitable miles is set by statute.For 2006, Katrina-related charitable rates will be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.
  • Twitter Facebook Google+


    Please note that comments may be moderated. 
    Leave this field empty:

    Fleet Incentives

    Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.


    Fleet Tracking And Telematics

    Todd Ewing from Verizon Connect will answer your questions and challenges

    View All


    Fleet Management And Leasing

    Jack Firriolo from Merchants will answer your questions and challenges

    View All


    Fuel Management

    Bernie Kanavagh from WEX will answer your questions and challenges

    View All


    Sponsored by

    Ethanol is ethyl alcohol. It is used as a fuel when it is blended with gasoline, for example in E-85.

    Read more

    Up Next

    More From The World's Largest Fleet Publisher