The IRS 2022 standard mileage rate for the business use of automobiles has increased 2.5 cents from 2021. Additionally, as of June 9th of this year, the IRS announced an increase in the optional standard mileage rate for the final six months of 2022.
IRS Standard Mileage Rate for 2022
The IRS standard mileage rate for 2022 is to be 58.5 cents per mile, up from 56 cents.
However, for the final half of 2022, taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business. The optional standard mileage rate is 62.5 cents per mile. The new optional rate became effective July 1st, 2022.
Additionally, the maximum standard automobile cost for computing the allowance under a fixed and variable costs plan is $56,100 in 2022, up from $51,100 in 2021.
Medical and Moving Mileage Rates for 2022
The rate for medical or moving purposes is 18 cents per mile, up from 16 cents in 2021.
Under the Tax Cuts and Jobs Act (Pub. L. 115-97), employer-paid moving expenses are taxable wages for most employees from Jan. 1, 2018, to Dec. 31, 2025, except for some active-duty members of the U.S. military.
Charitable Purposes Mileage Rate for 2022
The mileage rate for charitable purposes is set in statute and remains unchanged at 14 cents per mile.
Compliance Help for IRS Mileage Rates
Any businesses that are struggling with IRS mileage rate compliance may want to consider seeking help from a payroll provider.
To learn about how EBC HCM is already helping businesses with IRS mileage rates and the appropriate deductions, contact us today.
