A rare mid-year adjustment has been made to the standard mileage rate for business transportation expenses. Beginning on July 1st, 2022, the IRS has announced that the rate for the remainder of 2022 will increase to 62.5 cents per mile. “This modification results from recent increases in the price of fuel”, the IRS stated in an announcement earlier this week. This is a 4-cent increase per mile from the first half of 2022.
“The revised standard mileage rates set forth in this announcement apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2022, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2022, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2022.”
While uncommon, the IRS has made a mid-year adjustment to the business standard mileage rate before, most recently in 2011.
There are additional adjustments to be aware of with regards to medical and military travel expenses, which can also be found in the announcement.