Tax Alert: Mid-Year Increase to IRS Mileage Rates
IRS mileage rates generally are established annually and are left in place for each calendar year once set. However, the spiraling cost of gasoline nationwide has led the IRS to do what they have not done in more than a decade – increase the mileage rates mid-year.
Effective for miles incurred beginning July 1, 2022, the standard mileage rate increases from 58.5¢ to 62.5¢ per mile. This rate is used for reimbursement of employee travel costs by many businesses, and is also the rate allowed as a deduction by taxpayers filing tax returns who have elected the use of the mileage rate rather than tracking actual costs incurred while operating a vehicle for business use.