Mileage Reimbursement Rate Rises

The General Services Administration has raised the mileage allowance for federal employees using personal vehicles on official business from 40.5 cents per mile to 48.5 cents per mile, effective September 1-December 31. GSA’s action follows the IRS’s decision to make a similar increase in the mileage allowance for tax deductibility purposes; GSA typically follows the IRS’s lead regarding the mileage rate. Meanwhile, Sen. Charles Schumer, D-N.Y., is seeking an increase in the reimbursement rate to 60 cents per mile effective September 1, 2005-December 31, 2006.