IRS Boosts Standard Mileage Rate for Rest of 2022

With gas prices still soaring, the Internal Revenue Service (IRS) recently announced an increase in the optional standard mileage rate for the final six months of 2022.

Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final six months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate at the start of the year. The new rate for deductible medical or moving expenses will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates were effective as of July 1.

The IRS normally updates the mileage rates once a year in the fall for the next calendar year. Midyear increases in the optional mileage rates are rare. The last time the IRS made such an increase was in 2011.

“The IRS is adjusting the standard mileage rate 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.”