Accounts Payable

IRS Moving Mileage Rate

Effective January 1, 2009 the IRS is decreasing the rate that an individual can deduct for mileage related to a move.  The rate will be decreased from $.27 per mile to $.24 per mile.   State employees that are reimbursed for mileage for a move are reimbursed at the state reimbursement rate which is $.485 per mile.  The difference between the rate the state reimburses the employee for the move and the rate the IRS allows as a deduction is taxable to the employee.  For any moves after December 31, 2008 the taxable mileage reimbursement would be $.245 per mile ($.485 - $.24).  The non-taxable portion of the mileage reimbursement would be $.24 per mile.  This assumes that there are no changes in either the state's reimbursement rate or the IRS moving rate after January 1 this calendar year.  

Please forward this information to anyone in your agency that is involved in moving reimbursements.