The IRS recently released the 2022 mileage rates for businesses to use as guidance when reimbursing workers for applicable miles driven within the year. The rates tend to increase every year to account for rising fuel and vehicle and maintenance costs and insurance rate increases.
Businesses can use the standard mileage rate to calculate the deductible costs of operating qualified automobiles for business, charitable, medical, or moving purposes. Keep reading for the updated mileage rates, as well as some reminders for mileage reimbursements and deductions.
Standard mileage rates for cars, vans, pickups and panel trucks are as follows:
|Use Category||Mileage rate
(as of Jan. 1, 2022)
|Change from previous year|
|Business miles driven||$0.585 per mile||$0.025 increase from 2021|
|Medical or moving miles driven*||$0.18 per mile||$0.02 increase from 2021|
|Miles driven for charitable organizations||$0.14 per mile||Note: Only congress may adjust the mileage rate for service to a charitable organization by a Congress-passed statute.|
*Moving miles reimbursement for qualified active-duty members of the Armed Forces
When reimbursing employees for miles driven, keep in mind the following reminders and considerations:
Please contact Keith Laudenberger via our online contact form for more information.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.