IRS increases standard mileage rate for the second half of 2022

The IRS announced June 9 that the optional standard mileage rate is increasing by 4 cents per mile for the last six months of 2022.

Effective July 1, the standard mileage rate for business travel will be 62.5 cents per mile.

The rate for deductible medical or moving expenses (which is available only for active-duty members of the military) is also increasing by 4 cents per mile and will be 22 cents for the second half of 2022.

Normally, the adjustment is made annually but the IRS says it is making the adjustment now in recognition of recent increases in the cost of gasoline. The agency last made a midyear adjustment to the rate in 2011.

Taxpayers can use the optional business standard mileage rate to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. Many businesses also use the rate to reimburse their employees for mileage.

The 14 cents per mile rate for charitable organizations remains unchanged.