The seemingly endless rise in gas prices in the United States prompted the IRS on Thursday to raise the standard mileage deduction rate to 2022.

The increase announced today will run from July 1 to the end of 2022. The new rate is 62.5 cents per mile for business use of the car. That’s 4 cents more than the 58.5 cents that the IRS is compensating by June.

The new rate of deduction of kilometers for the movement and medical use of the vehicle is up to 22 cents, starting from July 1. That’s more than 18 cents in the first half of 2022.

Here is a breakdown of the changes:

Updated standard of standard deduction of kilometers in 2022

Using a car Mileage from January 1 to June 30, 2022 (cents per mile) Mileage July 1-December. 31 2022 (cents per mile)
Business 58.5 62.5
Moving / Medicine 18 22
Charitable 14 14


The IRS is updating standard mileage deduction rates for the remainder of 2022

A standard mileage deduction can be used to determine the calculated cost of using a vehicle for business purposes. The taxpayer retains the ability to calculate the “actual cost” of using his vehicle for business purposes rather than the standard mileage deduction rate.

“In recognition of the recent rise in gasoline prices, the IRS has made this special adjustment for the final months of 2022,” reads an update to the newsletter’s e-newsletter on Thursday.

“The IRS is adjusting standard mileage rates to better reflect recent fuel price increases. We know that a number of unusual factors have affected the price of fuel, and we are taking this special step to help taxpayers, businesses and others who use this rate, ”said IRS Commissioner Chuck Retig.

Typically, the IRS updates the standard mileage deduction closer to the end of the calendar year.

Any business travel expenses recorded during the first half of 2022 (until the end of June) should still be applied at the rate of 58.5 cents

Rising gas prices have largely influenced the IRS’s decision to update the mileage deduction rate

The main culprits in this update of the Tax Inspectorate are the rapid gas prices, which affect all American businesses. But the agency says other factors, such as depreciation and insurance costs, have also been taken into account.

But that decision was largely due to rising gas prices, and the IRS recently heard from selected officials about the need to update the standard mileage rate in the middle of this year to offset this particular price increase.

On Thursday, gas prices across the country set a new record. According to AAA.com, the average price of conventional unleaded gas in the U.S. is $ 4.97. The record high price per gallon of diesel fuel is now $ 5.74.

This step is not unprecedented. The IRS notes that it last updated the mid-year mileage deduction rate back in 2011.

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