12

The IRS Increases Drivers’ Mileage Deduction

by | Jun 14, 2022 | Articles, Insight-Post, Tax and Accounting Desk

Usually, the IRS updates mileage deduction rates annually, but with the recent spikes in gas prices, they’ve been called on to make a special out-of-cycle adjustment. On Thursday, June 9, 2022, the IRS announced a boost to the mileage deduction rate for vehicles used for business purposes. These changes will take effect on July 1, 2022.

The current rate of 58.5 cents per mile will increase to 62.5 cents per mile, taking effect on July 1 and the remainder of the year. Additionally, there is a 4-cent-per-mile increase for vehicles used for medical or moving purposes, rising to 22 cents per mile.

Mileage Rate Changes

Rates, 1/1 through 6/30/22Rates 7/1 through 12/31/22
Business58.562.5
Medical/Moving1822
Charitable1414

“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” IRS Commissioner Chuck Rettig said in a statement. “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.”

If you have questions about how this impacts you and your business, contact us for more information.

Stay Connected