The IRS recently released new guidance on June 9, 2022, for mileage rates for the remainder of 2022. According to IRS Commissioner Chuck Rettig, "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 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
| Purpose | Rates: Jan 1 to June 30, 2022 | Rates: July 1 to Dec 31, 2022 |
| Business | 58.5 | 62.5 |
| Medical/Moving | 18 | 22 |
| Charitable | 14 | 14 |
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For reference, prior guidance for this reporting is listed below.
The standard mileage rate for the use of a car (also vans, pickups or panel trucks):
|
Year |
Business Miles |
Medical/Moving |
Service to Charitable Organization |
|
2021 |
56 cents per mile |
16 cents per mile |
14 cents per mile |
|
2020 |
57.5 cents per mile |
17 cents per mile |
14 cents per mile |
|
2019 |
58 cents per mile |
20 cents per mile |
14 cents per mile |
|
2018 |
54.5 cents per mile |
18 cents per mile |
14 cents per mile |
|
2017 |
53.5 cents per mile |
17 cents per mile |
14 cents per mile |
A study is done of the fixed and variable costs of operating a vehicle to determine the standard mileage rate for business.
Medical and moving purposes mileage is based on variable costs.
Taxpayers can use either standard mileage rates or actual expenses for the vehicle but not both. If a taxpayer has previously used the MACRS (Modified Accelerated Cost Recovery System) depreciation method or claimed Section 179 deduction, for the vehicle, they may not use the business standard mileage rate.
For more information, you can visit the IRS website.