Mileage Rates Increase for Remainder of 2022
On June 9th, the IRS announced that for the final 6 months of 2022 the optional standard mileage rates to determine the deductible costs of operating an auto for business and certain other purposes would be increased. The updated mileage rate for business travel will be 62.5 cents per mile, up from 58.5 cents per mile. This rate is often used by Schedule C filers instead of tracking their actual vehicle costs as well as by businesses for reimbursing employees for business miles driven in their personal vehicles. For medical and moving expenses, the updated mileage rate will be 22 cents per mile, up from 18 cents per mile. There is no change in the mileage rate for charitable contributions which remains fixed at 14 cents per mile.
The new mileage rates go into effect July 1, 2022 and are a direct response to rising costs. The rates are normally updated only once per year. These rates are not to be confused with the special transportation industry per diem for meals and incidental expenses which a fleet may pay on a cents per mile basis.
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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