IRS Releases 2022 Standard Mileage Rates

Mileage rates for 2022 are slightly up from those of 2021 due to inflation and other factors. These rates can be used to compute deductible costs of operating vehicles for business, medical and charitable purposes, and some members of the military can also use them to determine moving expense deductions. 

2022 Standard Mileage Rates

The standard mileage rates for 2022 are:

  • 58.5 cents per mile for business use

  • 18 cents per mile for medical use

  • 14 cents per mile for charitable use

FAVR Allowance for 2022

For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles placed in service after 2021 is $56,100 for passenger automobiles, trucks and vans. Employers can use a FAVR allowance to reimburse employees who use their own vehicles for the employer’s business.

2022 Mileage Rate for Moving Expenses

While the Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for most taxpayers until 2026, those that meet the following qualifications can expense 18 cents per mile.

  • a member of the Armed Forces of the United States

  • on active military duty

  • moving under a military order and incident to a permanent change of station

Unreimbursed Employee Travel Expenses

For most taxpayers, the Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for unreimbursed employee travel expenses too. However, certain taxpayers may still claim an above-the-line deduction for these expenses, as long as they are:

  • members of a reserve component of the U.S. Armed Forces

  • state or local government officials paid on a fee basis

  • performing artists with relatively low incomes

If you have any questions about the information above, feel free to reach out to us for further clarification.

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