WASHINGTON — The Internal Revenue Service today announced an increase
in the optional standard mileage rate for the final 6 months of 2022.
Taxpayers may use the optional standard mileage rates to calculate the
deductible costs of operating an automobile for business and certain
other purposes.
For the final 6 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. These new rates become effective July
1, 2022. The IRS provided legal guidance on the new rates in
Announcement 2022-13, issued today.
In recognition of recent gasoline price increases, the IRS made this
special adjustment for the final months of 2022. The IRS normally
updates the mileage rates once a year in the fall for the next
calendar year. For travel from Jan. 1 through June 30, 2022, taxpayers
should use the rates set forth in Notice 2022-03.
“The IRS is adjusting the standard mileage rates to better reflect the
recent increase in fuel prices,”
said IRS Commissioner Chuck Rettig. “We are aware a number of unusual
factors have come into play involving fuel costs, and we are taking
this special step to help taxpayers, businesses, and others who use
this rate.”
While fuel costs are a significant factor in the mileage figure, other
items enter into the calculation of mileage rates, such as
depreciation and insurance, and other fixed and variable costs.
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.
Taxpayers always have the option of calculating the actual costs of
using their vehicle rather than using the standard mileage rates.
The 14 cents per mile rate for charitable organizations remains
unchanged as it is set by statute.
Midyear increases in the optional mileage rates are rare, the last
time the IRS made such an increase was in 2011.