Mileage Rate Increase

Date: June 16, 2022

If you use an automobile for a business, a recent update from the IRS may affect the way your business
deductions are calculated. In response to the recent rise in gas prices, the IRS has increased the mileage
rate for the remaining six months of 2022 from 58.5 cents per mile to 62.5 cents per mile for business
travel. The optional standard mileage rates can generally be used to calculate the deductible costs of
operating an automobile for business and certain other purposes such as driving for charity and military
moving expenses.
While the IRS normally updates these rates in the fall to be used for the upcoming calendar year, they
have chosen to make an exception in acknowledgement of the current economic situation. However, for
travel from January 1 to June 30 of this year, taxpayers should still use the rates previously set forth
Taxpayers can refer to this announcement for a full explanation of the increased rates and what
purposes they apply for. If you have further questions about calculating these deductions and wish to
seek legal assistance, you can reach out to the Low Income Taxpayer Clinic by calling (812)-339-7668. 

Announcement with new mileage rates: 
Notice with original mileage rates: 

Megan Burtis,
Low Income Taxpayer Clinic Law Clerk