Sunday, June 12, 2022
HomeAccountingHigh Gas Prices Cause Midyear Mileage Rate Increase By IRS

High Gas Prices Cause Midyear Mileage Rate Increase By IRS

If you’ve driven at all in the last few months, you’ve probably noticed the unusually high gas prices across the country. According to AAA, the national average is nearing $5 per gallon. In light of this, the IRS has announced a rare mid-year increase to the standard mileage rates for the remainder of 2022. 

The business mileage rate is shifting from 58.5 to 62.5 cents per mile starting on July 1 and will continue through December 31. The medical/moving rate will increase from 18 to 22 cents per mile and the charitable rate remains unchanged at 14. 

Taxpayers can use the optional standard mileage rate as a benchmark to determine the deductible costs for vehicle operation for their situation. 

“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig in a press release. “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 IRS updates the rate annually and a mid-year adjustment is extremely rare—the last time such a change was made was in 2011, more than 10 years ago. 

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