In response to higher gas prices and overall higher vehicle costs, the IRS recently adjusted the optional standard mileage rate for the final six months of 2022. As of July 1^st, the standard business mileage rate will be 62.5 cents per mile which is an increase of four cents over the previous rate of 58.5 cents per mile. The new deductible medical mileage rate will be 22 cents per mile which is also an increase of four cents per mile over the previous rate of 18 cents per mile.

This change to the business rate will affect taxpayers who take the standard deduction per mile along with businesses that reimburse employees for miles driven using that rate.

The IRS normally only adjusts the mileage rate as of January 1^st but has made this change mid-year in the past in response to a spike in gas prices.

The mileage rate for charitable activity remains unchanged at 14 cents per mile.

For the IRS press release on this change, please see the link below:

IRS increases mileage rate for remainder of 2022 | Internal Revenue Service

If you have any questions about taking the standard mileage rate or tracking actual costs, please contact our office at  919-571-7055.