Fueled by rising gas prices, the optional standard mileage rate will jump for the rest of this year, effective July 1.
For the second half 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 IRS announced.
The new rate for deductible medical or moving expenses for active-duty members of the military will be 22 cents for the remainder of 2022, up 4 cents from the rate at the start of the year. The 14 cents-per-mile rate for charitable organizations, set by statute, remains unchanged.
The IRS normally updates the mileage rates once a year in the fall for the next calendar year but made an exception this year due to rising gasoline prices. Other items affect the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs. The IRS hasn’t made such a mid-year mileage increase in 11 years.
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.
For travel through June 30, taxpayers should use the rates in Notice 2022-03.