New Mileage Rate for Last Half of 2022

WASHINGTON — The Internal Revenue Service today announced an increase in the optional
standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard
mileage rates to calculate the deductible costs of operating an automobile for business and
certain other purposes.

For the final 6 months 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 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. These new rates
become effective July 1, 2022.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the
final months of 2022.

“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.” 

While fuel costs are a significant factor in the mileage figure, other items enter into the
calculation of mileage rates, such as depreciation and insurance and other fixed and variable
costs. 

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.
Midyear increases in the optional mileage rates are rare, the last time the IRS made such an
increase was in 2011.

Mileage Rate Changes

PurposeRates 1/1 through 6/30/2022Rates 7/1 through 12/31/2022
Business58.562.5
Medical / Moving1822
Charitable1414