To answer the question everyone wants to know: Is the IRS going to increase the standard mileage rate? Yes! Effective July 1, 2022 the standard mileage rate will increase from 58.5 cents to 62.5 cents per mile. As a reminder, please make sure to track your mileage by date because the reimbursement is based on the actual date miles are traveled.

The Internal Revenue Service announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.