IRS Increases Business Mileage Rate Effective July 2022

Last week, the Internal Revenue Service announced a 4-cent increase in both the standard business mileage rate and the move mileage rate effective July 1. For business miles traveled January 1 through June 30, the standard rate is 58.5 cents a mile. From the period of July 1 through December 31, 2022, the rate increases to 62.5 cents a mile. The move mileage rate, which is applicable to active military and some non-conforming states, increases to 22 cents a mile for miles traveled July 1 through December 31, up from 18 cents a mile for miles traveled from January 1 through June 30. Travel for charitable purposes remains at 14 cents a mile. As before, taxpayers always have the option of calculating the actual costs of using their vehicle (gas, oil, tires, etc.) rather than using the standard business mileage rate as a business deduction. As a reminder, other car expenses such as parking fees and tolls attributable to business use are separately deductible. For more information, please see the IRS website.