IRS Issues Mid-year Mileage Rate Increase Amid High Gas Prices

Dimitri Gedevanishvili

Dimitri Gedevanishvili

Marketing Manager
irs mileage rate 2022 increase mobile employee driving

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.

Like what you read?

Show that you found the article interesting by liking and sharing.

Discover how TripLog can save your company time & money!

Learn more:

triplog logo

Switch to The #1 Mileage Tracking & Reimbursement Solution

reviews

(4.8 rating score)

© 2011 – 2022 Copyright TripLog, Inc. All Rights Reserved.

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Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements.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