On Thursday, the IRS announced an increase in the 2022 mileage rates effective July 1.  For the final six months of 2022, the business mileage rate is increasing to 62.5 cents per mile, up 4 cents from the rate used for the first six months of the year.  The new rate for deductible final move mileage (available for active-duty members of the military plus used by certain states) and medical travel will be 22 cents per mile for the remainder of 2022, up 4 cents from the rate used for the first six months of 2022.

It is rare for the IRS to adjust mileage rates mid-year.  The last time was in 2011.  Due to the recent increase in fuel prices, the IRS decided to increase the rates mid-year, rather waiting until the usual January 1st adjustments.  Keep in mind that while fuel costs play a significant role in determining the rates, there are other factors including depreciation and insurance as well as other fixed and variable costs.

Please keep in mind that final move mileage (along with all shipment, storage and final move costs) remain taxable since 1/1/18 with the exception of military moves and certain states.  The charitable mileage rate remains unchanged at 14 cents per mile.  IRS Notice 2022-13 has all the details:  https://www.irs.gov/pub/irs-drop/a-22-13.pdf

See more details here:  2022 Federal Tax Info

Source: www.irs.gov

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