The Federal Mileage Rate, also known as the Standard Mileage Rate, is a reimbursement rate established by the Internal Revenue Service (IRS) for the amount paid per mile for business-related travel expenses incurred by employees. This rate can be used by employers to calculate the amount of reimbursement owed to their employees for using their personal vehicles for work-related purposes.

Example

If an employee travels 100 miles for business-related purposes and the Federal Mileage Rate is set at $0.56 per mile, the employer will reimburse the employee $56.00 for the mileage traveled.