Each December, the IRS sets the mileage reimbursement rate for the following year. If businesses choose to reimburse their employees for work-related driving, this is the rate at which such reimbursement should be done. The IRS 2016 standard mileage rate is $.54 per mile.
An independent contractor calculates this amount for the IRS each year, based on the “fixed and variable costs of operating an automobile” in the previous year. These costs include fuel prices, as well as maintenance. The 2016 rate is $.035 lower than the 2015 rate of $.575 per mile.
See this article on the IRS web site for more information:
https://www.irs.gov/uac/Newsroom/2016-Standard-Mileage-Rates-for-Business-Medical-and-Moving-Announced
