2022 Standard Mileage Rates

Effective July 1, 2022 standard mileage rate have increased.

With year-end quickly approaching, it’s time to update your records and plan ahead for mileage reimbursement rates. The IRS Notice 2022-03 has increased the standard mileage rates for 2022, effective January 1.

Updated Mileage Rate Changes

PurposeRates 1/1 through 6/30/22Rates 7/1 through 12/31/22
Business58.5 cents62.5 cents
Medical/Moving18 cents22 cents
Charitable14 cents14 cents

*Table is updated to reflect the IRS increased mileage rates for final six months of 2022

Mileage can vary and taxpayers may calculate the actual costs of using their vehicle rather than using the standard mileage rates. Taxpayers using the standard mileage rate must use it in the first year the car is available for business use. In following years, taxpayers can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period if the standard mileage rate is initially chosen.

The IRS notice also discusses the maximum auto cost which is used to calculate the allowance under a variable and fixed rate plan. Employers can use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule since the notice gives the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar 2022.

Please contact BSSF or your tax advisor if you have any questions regarding mileage reimbursement rates.

Disclaimer: Information provided by Brown Schultz Sheridan & Fritz (BSSF) as part of this blog post is intended for reference and information only. As the information is designed solely to provide guidance and is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations, responding to such inquiries does NOT create a professional relationship between BSSF and the reader and should not be interpreted as such. Although BSSF has made every reasonable effort to ensure that the information provided is accurate, BSSF makes no warranties, expressed or implied, on the information provided. The reader accepts the information as is and assumes all responsibility for the use of such information.