Mileage Rate Drops for 2006

The rate the government pays federal employees for using their privately owned vehicles for official business is dropping in 2006 to 44.5 cents per mile, down from the 48.5 cent per mile rate that had applied starting last September. The move by the General Services Administration follows, as usual, the IRS figure used for tax deductions for certain unreimbursed mileage. The drop reflects lower gas prices since September, when the figure was raised from the 40.5 cents per mile rate that had applied in the first eight months of 2005. Meanwhile, GSA set the 2006 rate for use of a motorcycle at 30.5 cents per mile and the rate for use of a privately owned airplane at $1.07 per mile. The new rates are effective as of January 1, 2006.