 New Business Mileage Rate effective July 1st, 2022 From 58.5 cents a mile to 62.5 cents a mile |
 On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13, increasing the standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile. The new rate will be effective for traveling beginning on July 1, 2022, through December 31, 2022. The old rate of 58.5 cents per mile will remain in effective through June 30, 2022. In the IRS’ press release, IRS Commissioner Chuck Rettig noted: The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices. 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. ”The standard mileage rate is a national average rate, which takes into account a variety of factors including fuel costs, depreciation, insurance and other fixed and variable costs. The 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. Employers continue to have the option to use other methods that calculate the actual costs of using their vehicle rather than using the standard mileage rates. |
