The Internal Revenue Service (IRS) has announced that its optional standard mileage rate will increase from 58.5 cents to 62.5 cents per mile driven for business purposes. The increase is primarily in response to increased fuel prices and applies for the last 6 months of 2022.
Use of this rate is optional, though it is widely used by employers as a standard rate for calculating mileage reimbursement for employees who use their personal vehicle for business purposes. If your organization uses the IRS rate to calculate mileage reimbursement, be sure to update your systems to account for this change.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates (contact your CPA or us if you’d like to talk more about this).
The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute. The new rate for deductible medical or moving expenses will be 22 cents for the remainder of 2022.