Gas prices have continued to remain low in 2016 which means a lower mileage reimbursement rate in 2017 if you use a car for business purposes. The IRS has set the standard mileage rate for 2016 at 53.5 cents per mile. This is a decrease from 54 cents in 2016. For reference, in 2015, the mileage reimbursement rate was 57.5 cents. Per the IRS announcement, “the standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.” Employers are not required to pay the IRS mileage rate and can pay a higher or lower rate based on the actual costs for the employee using their vehicle.