The Vault Atypical Insights

Standard Mileage Deduction to Increase

Written by Adam Boatsman | Jul 6, 2022 9:12:46 AM

In response to increased gas prices, the IRS will increase the optional standard mileage rate by 4 cents per mile for the last six months of 2022. Effective July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile.

In addition, the rate for deductible medical or moving expenses (available only for active-duty military) is also increasing by 4 cents per mile -- to 22 cents for the second half of 2022.

Remember, you can use the optional business standard mileage rate to compute the deductible costs of operating a vehicle for business use in lieu of tracking actual costs. It's also common practice for businesses to use this rate to reimburse their employees for mileage when using their vehicles during the workday.