Mileage Rate Increases for 2022
Due to the rising gas prices across the country, the IRS announced an increase in the optional standard mileage rate for the second half of 2022.
Beginning July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The IRS normally updates the mileage rates annually in the fall for the next calendar year. Midyear increases in the optional mileage rates are rare and, the last time the IRS made such an increase was 11 years ago.
Mileage Rate Changes for 2022
|Purpose||Rates 1/1 to 6/30/2022||Rates 7/1 to 12/31/2022|
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