pricingabout
Book Demo
payroll-and-taxes

IRS Raises Mileage Rates

June 13, 2022
In recognition of recent gasoline price increases, the IRS has made a mid-year adjustment to the optional mileage rate - for the first time since 2011.

In recognition of recent gasoline price increases, the IRS has made a mid-year adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and certain other purposes - for the first time since 2011.

The IRS increased the standard mileage rate for the final six months of 2022, starting July 1.

  • The standard mileage rate for business travel will be 62.5 cents per mile, up four 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.
  • The rate for charitable organizations is set by statute and will remain unchanged at 14 cents per mile.

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. It is based on the fixed and variable costs of operating an automobile, such as fuel, depreciation and insurance. The rate is also used as a benchmark by the federal government and 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.

similar blogs

You might also be interested in reading:

payroll-and-taxes

Read More
covid-19

Read More