Mileage Rate Could Rise

Federal employees using their personal vehicles on official business could be reimbursed at a rate of 48.5 cents per mile in 2007, up by four cents from the current rate, if past practice is followed. The reimbursement rate is set by GSA, but in most cases the rate follows the lead of the IRS, which sets a mileage reimbursement rate for tax purposes. The IRS has announced a 48.5 cent per mile rate for 2007, which would match the highest rate ever, which applied for the last four months of last year.