Effective January 1, 2011, the business mileage rate will be increased to 51 cents per mile. The new rate for computing deductible medical or moving expenses will be reduced to 19 cents per mile. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents per mile. The mileage rates for 2011 reflect generally slightly increased transportation costs compared to a year ago. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. See news release IR-2010-119 for more details.