2022 Mileage Rate Increase
Greetings from the Seth & Alexander team!
The IRS has announced the standard mileage rate increase is now 62.5 cents per mile, up 4 cents from the rate at the start of 2022. Taxpayers may use the standard rate to calculate the deductible costs of operating an automobile for business and certain other purposes.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Remember: Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Normally, the IRS updates the mileage rates once a year, generally in the fall, for the next calendar year. The rate increases are a special adjustment for the final months of 2022 in response to recent gasoline price increases.
If you have any more questions regarding the rate increases for 2022,
please contact the Seth & Alexander team.