In Announcement 2011-40, the IRS announced on June 23, 2011 that the mileage rate for all business miles driven from July 1, 2011, through Dec. 31, 2011, will be increased to 55.5 cents per mile. This is an increase of 4.5 cents from the 51 cent rate in effect for the first 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 made this special adjustment for the final months of 2011. While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs. The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.