IRS Mileage Rate Change The mileage rate paid to persons traveling in privately owned vehicles on official business for the State of Alabama is determined by the Code of Alabama 1975, S36-7-22, as amended, which became effective October 1, 1999. This code section sets the mileage rate at the amount allowed by the Internal Revenue Code for income tax deductions. The allowable rate increased as of July 1, 2011 from 51 cents per mile to 55.5 cents per mile. Accordingly, System Office mileage reimbursement for travel on or after July 1, 2011 will be reimbursed at the new rate of 55.5 cents per mile. Please adjust your expense reports submitted for travel accordingly. If you have any questions, you may call either 256-824-2246 or 2239.