Recently, the Internal Revenue Service announced an increase in the standard mileage rate taxpayers can claim for the last six months of 2011. Effective July 1 it increases the participation rate to 55.5 cents a miles off 51 cents and cents, 23.5 cents per mile for 19 doctors and moving. The deduction for the cost per kilometer of charity remains at 14 cents.

“This year, gas prices have increased a great impact on individual Americans,” said IRS Commissioner Douglas Shulman, “if the IRS is adjusting the standard mileage rates to better reflect [them].”

The standard mileage rate for business is used by many taxpayers to calculate the deductible costs of using a car in a business rather than tracking actual costs. The rate is also used as a benchmark by the federal government and many businesses to reimburse employees for mileage.