The IRS on Dec. 17 announced the standard mileage rates—optional rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes—for 2022.
Effective Jan. 1, 2022, the standard mileage rates for the use of a car—as well as vans, pickups or panel trucks—will be:
- 58.5 cents per mile driven for business use, up 2.5 cents from the 2021 rate;
- 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the 2021 rate; and
- 14 cents per mile driven in service of charitable organizations, a rate set by statute that remains unchanged from that for 2021.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers can use the standard mileage rate, but must opt to use it in the first year a car is available for business use. In later years, they can use either the standard mileage rate or actual expenses. For leased vehicles, the standard mileage rate method must be used for the entire lease period (including renewals) if that is the rate chosen. And taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
The 2022 standard mileage rates are contained in IRS Notice 2022-3.
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