For the first time since 2011, the IRS has increased the mileage rate mid-year to keep up with increasing gas prices. Effective July 1, 2022 both the business and the medical/moving mileage rates are increasing.
For the first half of 2022 the mileage rates are as follows:
Business $0.585/mile
Medical/Moving $0.18/mile
Charitable $0.14/mile, note that this rate is fixed by law
For the second half of 2022 the mileage rates are increasing four cents to the following amounts:
Business $0.625/mile
Medical/Moving $0.22/mile
In some cases business owners calculate actual vehicle costs rather than using the above noted standard mileage rates. If you use the actual costs method, you would have already seen an increase in your business costs.
For more information take a look at IRS News Release IR-2022-124 and for more information on the actual costs method vs standard costs method, take a look at our 2019 article, Getting the Most Out of Your Business Vehicles Expenses.
Business $0.585/mile
Medical/Moving $0.18/mile
Charitable $0.14/mile, note that this rate is fixed by law
For the second half of 2022 the mileage rates are increasing four cents to the following amounts:
Business $0.625/mile
Medical/Moving $0.22/mile
In some cases business owners calculate actual vehicle costs rather than using the above noted standard mileage rates. If you use the actual costs method, you would have already seen an increase in your business costs.
For more information take a look at IRS News Release IR-2022-124 and for more information on the actual costs method vs standard costs method, take a look at our 2019 article, Getting the Most Out of Your Business Vehicles Expenses.
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