IRS Announces 4 Cents Per Mile Increase in Certain Mileage Deduction for Last 6 Months of 2022
On May 13, eighteen members of Congress wrote the IRS asking for the agency to increase mileage rates in recognition of the rapid rise in the price of gasoline since the beginning of 2022.[1] The letter pointed out that the IRS had previously raised the rate mid-year in 2011, noting the increases this year are more substantial than those that prompted the increase in rates in 2011.
The IRS has now decided to take action to increase some mileage rates by 4 cents per mile effective July 1, announcing the change to be in effect for the last six months of 2022 in Announcement 2022-13.[2]
The revised mileage rates are:
Business mileage: 62.5 cents per mile (previously 58.5 cents per mile)
Medical and moving: 22 cents per mile (previously 18 cents per mile).[3]
The rate for charitable mileage will remain at 14 cents per mile, as that amount is set by the Internal Revenue Code and is not adjusted annually based on fuel costs, unlike the other two rates.[4]
The rates previously announced in Notice 2022-3 for 2022 will apply for mileage driven between January 1, 2022 to June 30, 2022.[5]
In a news release issued the same day, IRS Commissioner Chuck Retting explains the agency’s reasons for the changes:
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “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.”[6]
[1] “Gallego, Davids 2022 Standard Mileage Rate Letter,” May 13, 2022, https://rubengallego.house.gov/sites/evo-subsites/rubengallego.house.gov/files/evo-media-document/Gallego%2C%20Davids%202022%20Standard%20Mileage%20Rate%20Letter.pdf (retrieved June 12, 2022)
[2] Announcement 2022-13, June 9, 2022, https://www.irs.gov/pub/irs-drop/a-22-13.pdf (retrieved June 12, 2022)
[3] Announcement 2022-13, June 9, 2022
[4] Announcement 2022-13, June 9, 2022; IRC §170(i)
[5] Announcement 2022-13, June 9, 2022
[6] “IRS increases mileage rate for remainder of 2022,” IR-2022-124, June 9, 2022, https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022 (retrieved June 12, 2022)