IRS increases mileage rate for remainder of 2022 to 62.5 cents

The Internal Revenue Service announced an increase in the optional standard mileage rate for the final 6 months of 2022. 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 rates become effective July 1, 2022. For travel from Jan. 1 through June 30, 2022, the rate remains at 58.5 cents. 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. Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011. 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. For more information see IRS Notice 2022-03 and Announcement 2022-13 and www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022
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