The General Services Administration (GSA) announced that mileage reimbursement rate for federal employees using privately –owned vehicles during official travel will decrease slightly to 53.5 cents from the current level of 54 cents.  The new rate will go into effect on January 1, 2017. 

Mileage reimbursable rates also decreased for official airplane travel (to $1.15 from $1.17) and motorcycles (to 50.5 cents from 51 cents).

Rates declined due to lower fuel prices that were offset somewhat by increasing insurance and maintenance costs.

GSA annually reviews mileage reimbursement rates for federal employees.  GSA rates cannot exceed the rate set by the Internal Revenue Service (IRS) for calculating business mileage expenses on tax returns.