The Internal Revenue Service announced a rare mid-year increase in the optional standard mileage rates, effective for the final 6 months of 2022. IRS Commissioner Chuck Rettig said, “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses, and others who use this rate.”
This mid-year change bumps the standard mileage rate for business travel to 62.5 cents per mile and the medical and moving rate to 22 cents per mile.
The new rates become effective July 1, 2022, and legal guidance issued by the IRS can be found in Announcement 2022-13. For travel occurring between January 1 and June 30, 2022, taxpayers should continue to use the rates set in Notice 2022-03.
The 14-cent per mile rate used to determine the deductibility of miles driven in service of a charitable organization is set by statute and remains unchanged under Section 170(i) of the Internal Revenue Code.