Due to the rise in fuel costs, the IRS adjusted standard mileage rates for the second half of 2022
Per the IRS, the optional standard mileage rate increased for the final six months of 2022. The deductible costs of driving a car for work or other purposes can be calculated by taxpayers using the optional standard mileage rates.
The standard mileage rate for business travel in the final six months of 2022 is 62.5 cents per mile, an increase of 4 cents over the rate at the beginning of the year. The new rate for relocating or medical expenditure deductions (eligible to active-duty military personnel) was 22 cents for the remaining months of 2022, an increase of 4 cents from the rate in effect at the beginning of 2022. These new rates went into effect July 1, 2022. “The IRS provided legal guidance on the new rates in Announcement 2022-13.
“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 January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03 (Via IRS.gov News Release).
“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.”
Mileage Rate Changes
|Purpose||Rates 1/1 through 6/30/2022||Rates 7/1 through 12/31/2022|