Effective Jan. 1, 2022, the optional standard mileage rate used in deducting the costs of operating an automobile for business purposes will be 58.5 cents per mile, the IRS announced in Notice 2022-03 on Dec. 17.
Employers often use the standard mileage rate—also called the safe harbor rate—to pay tax-free reimbursements to employees who use their own vehicles for business.
For 2022, standard mileage rates for the use of cars, vans, pickups or panel trucks will be:
- 58.5 cents per mile driven for business use, up 2.5 cents from 2021. This ties the highest safe harbor rate the IRS has ever published, which was a midyear increase in July 2008.
- 18 cents per mile driven for medical care and for moving purposes for active-duty members of the Armed Forces, up 2 cents from the rate for 2021.
- 14 cents per mile driven in service of charitable organizations, which remains unchanged.
For cars employees use for business, the portion of the standard mileage rate treated as depreciation will be 26 cents per mile for 2022, unchanged from 2021.
While the standard mileage rates for business, medical and moving purposes are based on annual changes in the costs of operating an automobile, the charitable rate is set by statute.
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