June 10, 2022
IRS Announces Mid-Year Mileage Rates (IRS Announcement 2022-13)
The IRS on June 9, 2022, announced a mid-year increase in the 2022 standard mileage rates used to calculate the deductible expenses of operating vehicles for business, charitable, medical, or moving purposes. The 2022 standard mileage rates are explained in IRS Announcement 2022-13 and additional details can be found here.
Effective July 1, 2022, the standard mileage rates for the use of an automobile, vans, pickups, and panel trucks are updated as follows:
- 62.5 cents per mile driven for business use, up 4 cents from the 2022 rate announced January 1, 2022;
- 22 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 4 cents from the start of the 2022 rate announcement; and
- 14 cents per mile driven in service of charitable organizations, a rate set by statute that remains unchanged from 2021.
Taxpayers can use the standard mileage rate but must opt to use it in the first year a car is available for business use. In later years, taxpayers can use either the standard mileage rate or actual expenses. Regarding leased vehicles, the standard mileage rate method must be used for the entire lease period (including renewals) if that is the rate chosen. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
| Mileage Rate Changes | ||
| Purpose | Rates 1/1 through 6/30/2022 | Rates 7/1 through 12/31/2022 |
| Business | 58.5 | 62.5 |
| Medical/Moving | 18 | 22 |
| Charitable | 14 | 14 |
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Maria is a Partner at Wilke & Associates, serving closely held businesses in manufacturing, real estate, transportation/logistics, technology industries, and high net worth individuals and executives in delivering effective tax strategies.