In recognition of recent gasoline price increases, the IRS announced a special adjustment effective July 1, 2022 for the final months of 2022 to 62.5 cents per mile. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.
In addition, 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 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.
