Effective July 1, 2022, the IRS will increase its recommended standard mileage rate for the last 6 months of 2022. According to IRS Commissioner Chuck Rettig, the reason for this rare mid-year change is due to the rising gas prices in the United States.
What Is the New 2022 Standard IRS Mileage Rate?
The standard business mileage rate is going from $0.585 to $0.625 (62.5 cents) per mile, an increase of 4 cents. For comparison, the rate increased 2.5 cents from 2021 to 2022 last January.
Related: IRS Mileage Rate Explained
This change is the third-largest increase in the official business mileage rate since 1991. The medical/moving mileage rates have also increased an additional 4 cents to 22 cents (up from 18), though the rate for charity purposes remains 14 cents.
The last time the IRS has done a mid-year adjustment to its mileage rate was in July 2011. As gas prices rise to record heights ($5 per gallon nationally as of this writing) the change makes sense.
At 62.5 cents per mile, this is the highest the IRS mileage rates have ever gone. Business owners with mobile employees will need to adjust their mileage policies as needed.
If you use TripLog’s company mileage tracker and have your settings set to use the official IRS standard mileage rate, you will not need to make any changes. The TripLog app will automatically update the rate on July 1.
Related: 7 Ways Uber & DoorDash Drivers Can Save on Gas in 2022
There are several major mileage reimbursement methods, such as cents-per-mile, flat allowances, and Fixed and Variable Rate (FAVR) plans. Not all states and jurisdictions require mileage reimbursement, but several do, so it’s important to ensure that your business is staying compliant.
To learn more about how these changes can affect your business, schedule a complimentary live web demo with the mileage experts at TripLog. You can also visit our pricing page to learn more.