With gas prices at a sustained higher rate than they’ve been in decades, the IRS has made a rare move and upped the standard mileage rate for business travel for the final 6 months of 2022. This means you will have two separate mileage reimbursement rates depending on when your miles were logged.
For the latter half of 2022 (with a start date of July 1st), business mileage reimbursement will increase 4 cents per mile from the start of the year.
New Mileage Rates for 2022
(1/1/22 – 6/30/22)
|After July 1st|
(7/1/22 – 12/31/22)
The IRS made this special adjustment in acknowledgement of recent increases in gas prices, and hasn’t made an increase like this since 2011!
It is important to remember that gas prices are only one factor in calculating the mileage factor. Depreciation rate of the car itself, insurance, and other costs are factored in as well. Of course, you always have the option of going off of actual costs instead of using the standard mileage rate, but the terms of that depend on whether you use your vehicle for business only, or if it is for mixed business and personal use.
You can read the direct information from the IRS here: IRS Increases Mileage Rate for Remainder of 2022.