For the first time since 2011, the Internal Revenue Service (IRS) has increased the optional standard mileage rate at the mid-year point. This is a rare occurrence, but the IRS says the adjustment is needed due to rising fuel prices.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile. This is an increase of four cents from the rate that was in effect at the start of 2022. This rate is used to determine the deductible costs tied to operating an automobile for business purposes. This rate is often seen as the number to use when reimbursing employees for mileage.

Also up four cents from the beginning of the year are the rate for deductible medical or moving expenses (for active-duty military members), with that amount now sitting at 22 cents. The 14 cents per mile rate for charitable organizations will not change at this time.

These new rates go into effect on July 1, 2022. You can read a more formal announcement about these changes on the IRS website here:  A-2022-13 (irs.gov)