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Standard IRS Mileage Rates Increase In 2022

mileage reimbursement rate 2022

The IRS has finally announced the standard business mileage rate for 2022. As we predicted previously, the rate has gone up from 56 cents to 58.5 cents.

This is the rate that taxpayers can use when they file their 2022 income taxes if they are claiming a mileage deduction for a vehicle that they use for business. Companies are also welcome to use this rate when reimbursing their mobile employees, but it’s worth noting that this is a just recommendation in most states, not a federal requirement.

Related: How Much Should You Reimburse For Your Employee’s Mileage?

In addition to the business mileage rate increasing, the rate for medical and armed forces-related moving mileage has increased from 16 cents to 18 cents. The rate for miles driven in service of charitable organizations remains unchanged from last year.

triplog best mileage tracker app for business

How the IRS Determines the Standard Mileage Rates

While we discussed this in further detail in a previous blog post, it’s worth mentioning briefly how the IRS determines its standard mileage rates.

Every year, the IRS hires an independent contractor to conduct a study into what the fixed and variable costs of owning and operating a motor vehicle in the United States are. These costs can include things like the cost of maintenance, oil changes, fuel prices, tires, as well as the overall depreciation of the car.

Let Us Help You Develop a Mileage Plan For Your Company

Here at TripLog, we live and breathe mileage. With our sleek and intuitive mileage tracker app and comprehensive administrator dashboard, we are by far the market’s most knowledgable organization when it comes to mileage tracking and reimbursement.

Our team is standing by to help your company save time and money with a robust and detailed mileage reimbursement plan. Please schedule a complimentary live web demo for your company to learn more about how our product can help your streamline your mileage reimbursement process.

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Mileage Reimbursement Savings Calculator

Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements. See how much TripLog can help you save!

Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

This is the inline help tip! You can explain to your users what this section of your web app is about.

According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

Manual Entry Hours

2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

Estimated Labor Savings

Avg. $25/hr x Manual Entry Hours

$208,334

Your Company

could save

(Labor Savings + Reimbursement Savings) / Number of Drivers

$4,167

per driver