What Is the IRS Standard Mileage Rate for 2022?

The Internal Revenue Service (IRS) provides standard mileage rates for taxpayers to deduct vehicle operating costs. These rates are established annually, reflecting fixed and variable expenses. Using these rates offers a clear approach for calculating deductible expenses related to business, medical, or charitable travel.

The 2022 Standard Mileage Rates

The IRS made a mid-year adjustment to its standard mileage rates for 2022 due to increased fuel prices. From January 1 through June 30, 2022, the business mileage rate was 58.5 cents per mile. For medical and moving purposes, the rate was 18 cents per mile. The charitable organization rate remained 14 cents per mile throughout the entire year, as this rate is set by statute.

From July 1 through December 31, 2022, the business mileage rate increased to 62.5 cents per mile. The rate for medical and moving expenses rose to 22 cents per mile. Business use covers travel for self-employment or certain unreimbursed employee expenses. Medical mileage applies to travel for medical care, and charitable mileage pertains to volunteer work for qualified organizations.

Applying the Standard Mileage Rate for Deductions

Taxpayers can use the standard mileage rate to calculate vehicle-related deductions for eligible travel. This method is used by self-employed individuals and independent contractors. While the TCJA eliminated the deduction for unreimbursed employee business expenses, certain categories, like qualified performing artists or armed forces reservists, may still be eligible. For medical and charitable travel, taxpayers can claim these deductions if they itemize.

To calculate the deduction, taxpayers multiply the total qualified miles driven by the applicable rate for each period. The standard mileage rate covers vehicle operating costs, including fuel, oil, maintenance, insurance, and depreciation. It does not cover tolls and parking fees, which can be deducted separately. Interest paid on car loans and state and local vehicle taxes may be deductible apart from the mileage rate. Taxpayers can also deduct actual expenses, which requires more detailed record-keeping.

Essential Record-Keeping for Mileage

Maintaining accurate records is important when claiming mileage deductions. The IRS requires taxpayers to substantiate mileage claims with documentation. Information to record for each trip includes the date, destination, purpose, and total mileage driven.

While the standard mileage rate simplifies the deduction calculation, it does not remove the requirement to prove miles driven. Taxpayers also record their vehicle’s odometer readings at the beginning and end of the tax year. Record-keeping methods range from traditional mileage logbooks to digital smartphone applications. Consistent and contemporaneous record-keeping helps ensure compliance and provides reliable evidence in case of an IRS inquiry.