IRS Mileage Rate Increasing Starting July 1, 2022
With the recent and very impactful spike in gas prices, the Internal Revenue Service (IRS) announced on June 9th an upcoming increase in the optional standard mileage rate for business use of employees’ vehicles. The rate will increase by 4 cents, from 58.5 to 62.5 cents per mile, and will be effective July 1st through December 31st, 2022.
Although the IRS normally adjusts the mileage rate annually, it is uncommon to raise rates mid-year, with the last mid-year increase being in 2011. Even though the IRS mileage rate is an optional rate, employers are usually required to reimburse employees for the personal use of vehicles that are required for their jobs, less daily commutes.
The IRS increase comes as the national average price of gas in the U.S rose above $5/gallon. “The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “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.”
“IRS Raises Standard Mileage Rate for Final Half of 2022“, shrm.org. By Stephen Miller, 6/9/2022.
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