The Internal Revenue Service has announced an increase in the optional standard mileage rate for the final six months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year, but in recognition of recent gasoline price increases, the IRS increased the rate for miles driven from July 1, 2011 through December 31, 2011.

The optional standard mileage rate is used as a benchmark by governments and many businesses to reimburse their employees for mileage, and it is also used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs.

The new rate reflects an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.