Mileage Allowance Definition

For income tax purposes, a mileage allowance is a tax deduction of automobile expenses incurred during business or some other use such as travel for charity, moving, or medical care. The allowance is calculated as a "cent per mile" deduction though the rate per mile varies with the specific use of the automobile. In general, exact records must be available to document the allowance. Note that normal commuting to a place of employment does not qualify.