The IRS has announced an increase in the optional standard mileage rate for the final six months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.
For the remainder of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up four cents from the rate at the start of the year.
"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," explained IRS Commissioner Chuck Rettig. "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.”
While fuel costs are a significant factor in the mileage figure, other items enter the calculation of mileage rates, such as depreciation and insurance. The increased rate begins July 1. Read more.