IRS Increases Mileage Rate for Remainder of 2022
In recognition of the recent rise in gasoline prices, the IRS has issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 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 new rates become effective July 1, 2022. The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. 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. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
For travel from Jan. 1 through June 30, 2022, taxpayers should use the rates issued in Notice 2022-03.
Mileage Rate Changes
| Purpose | Rates Jan. 1-June 30, 2022 | Rates July 1-Dec. 31, 2022 |
| Business | 58.5 | 62.5 |
| Medical/Moving | 18 | 22 |
| Charitable | 14 | 14 |