The business mileage reimbursement rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction, for Federal income tax purposes under the Internal Revenue Code, at 26 U.S.C.
Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater.
The General Services Administration (GSA) sets the rate for federal jobs.
[1] Reimbursement by an employer on a per-mile basis is also used in other countries; it offers a similar simplification to payment of subsistence per diem.
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