Back in January, we notified you of the 2022 increase in mileage rates to 58.5 cents per mile for business use. But as gas prices have continued to rise in the last few months, the IRS has raised the optional standard mileage rate again. Starting on July 1, the rate for business travel will jump to:
- 62.5 cents per mile for business travel
- 22 cents per mile for medical and moving expenses for active-duty members of the military
The rate for charitable organizations remains unchanged at 14 cents per mile.
A mid-year adjustment is rare, but not unprecedented, as the last one took place 11 years ago. In addition to gas prices, depreciation, insurance, and other fixed and variable costs are considered when setting the rate.
The optional business standard mileage rate is used to compute the deductible costs of operating a car for business use in lieu of tracking actual costs, which is always an option as well. It is also used by most businesses to reimburse their employees for mileage.