The IRS has released the mileage rates for 2022. It is a good idea to update your various polices, guidelines, worksheets, and templates to reflect the new rates – which have increased slightly from 2021.
The 2022 rates are as follows:
· 58.5 cents per mile for business purposes
· 18 cents per mile for medical purposes (the moving deduction is not available for 2022)
· 14 cents per mile for charitable purposes (set by statute, thus does not change annually)
Beginning January 1, 2022, the standard mileage rates for cars, vans, pickups, and panel trucks increases to 58.5 cents per mile for business purposes, 18 cents per mile for medical or moving purposes, and 14 cents per mile for charitable purposes.
Consistent with the past few years (following the 2017 TCJA), the rates cannot be used to claim an itemized deduction for unreimbursed employee travel expenses or for moving expenses (except for certain members of the U.S. Armed Forces).
The portion of the business standard mileage rate treated as depreciation is as follows:
2018 25 cents/mile
2019 26 cents/mile
2020 27 cents/mile
2021 26 cents/mile
2022 26 cents/mile
When computing the allowance under a Fixed and Variable Rate (FAVR) plan, the standard vehicle cost cannot exceed $56,100 for autos, trucks, or vans. The same value is used for purposes of the fleet-average and vehicle cents-per-mile valuation rules. More details may be seen at - News Release IR-2021-251 and Notice 2022-3.
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