Mileage Reimbursement Rate Set to Increase

The IRS announced November 6, 2006 that the approved mileage reimbursement rate for the business use of a personal vehicle will increase January 1, 2007 to 48.5 cents per mile.

This is the reimbursement rate guideline that most nanny employers utilize to determine the mileage reimbursement for a nanny who uses her personal vehicle to transport the children and run errands.

The recent historical values are:

• January - December 2006 44.5 cents/mile
• September - December 2006 48.5 cents/mile
• January - August 2005 40.5 cents/mile