The Internal Revenue Service (IRS) has announced the national per-mile business driving rate of 50.5 cents for the U.S. taxpayer, effective Jan. 1, 2008. This compares to a rate of 48.5 cents-per-mile during 2007.

"The increase in the 2008 national per-mile rate reflects a combination of factors, including higher fuel prices, rising insurance costs, and higher depreciation costs,” notes Ted Schuerman, director of research & client service within Government Services at Runzheimer International. “Remaining cost components, such as maintenance and registration costs, remained relatively stable.”

To establish the annual per-mile rate, the IRS works closely with Runzheimer International, the Rochester, Wis.-based management consulting firm specializing in vehicle, travel, and living costs which has provided this service to the IRS since 1980. The 50.5 cents-per-mile standard is the amount the U.S. taxpayer can deduct for vehicle expenses on a 2008 tax return for business miles driven.