The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning July 1, 2022, will be 62.5 cents per mile, up 4 cents from the first half of 2022 [Announcement 2022-13, 6-9-22]. The IRS is making the midyear change “in recognition of the recent gasoline price increases.” While rare, the IRS has made midyear adjustments before. The last time the IRS made such a change was in 2011.

In addition, the standard rate for miles driven for medical or moving purposes will increase to 22 cents per mile, up from the 18 cents-per-mile rate in effect during the first half of 2022. The deduction for moving expenses only applies to members of the Armed Forces on active duty who move under a military order and due to a permanent change of station.

The standard mileage rate for operating a passenger car for charitable purposes, which is set by law, will remain at 14 cents per mile for the remainder of 2022.
Courtesy of the American Payroll Association, Curtis E. Tatum, Esq.