The IRS on Thursday announced a mid-cycle increase to the mileage deduction rate for vehicles used for business purposes.
The increase to 62.5 cents per mile, up from the current rate of 58.5 cents per mile, will take effect July 1 and remain for the rest of 2022. The IRS also announced a 4-cent-per-mile increase for vehicles used for medical or moving purposes, which will rise to 22 cents per mile.
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” IRS Commissioner Chuck Rettig said in a statement. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
Rates are generally updated annually; the last mid-cycle adjustment was in 2011.