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July 06, 2022 - 2 min read

The current IRS mileage rate

The IRS sets a mileage rate each year. The rate is used to calculate your mileage deductions or reimbursement for accrued business mileage with your personal vehicle.

The IRS has announced a change in the mileage rates from mid-2022, most likely due to the rising fuel costs. The mileage rates applicable from July 1st, 2022 are:

  • 62.5 cents per mile for business purposes, up 4 cents from the first half of the year
  • 22 cents per mile for medical and moving purposes, up 4 cents from the first half of 2022
  • 14 cents per mile for charity-related driving, remains unchanged

The IRS mileage rates used from January 1st to June 30th, 2022 are as follows:

  • 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021,
  • 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and
  • 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.

When to use the current mileage reimbursement rate

Usually, when people talk about the mileage rate, they mean the business rate–for example when you drive your personal vehicle for business purposes and are reimbursed the costs. Depending on whether you’re an employee or self-employed the rate might even be different.

The IRS sets the standard mileage rate each year, and it represents the ceiling for tax-deductible mileage.

For employees

Businesses often choose to reimburse employees by the standard mileage rate method, as it is the simplest in terms of administration work. If this is the case for you, then you use the current mileage rate to calculate the reimbursement you should receive from your employer on a monthly basis. If you are located in California, check out deducated article on California mileage reimbursement.

Keep in mind that it's up to your employer to set the rate and the rules for reimbursement, but the IRS's standard mileage rate is the limit for what is tax-deductible. If you're paid more per mile than the current IRS mileage rate, anything above it is considered taxable income.

If you want to learn more about other employee reimbursement methods, take a look at our mileage reimbursement for employees guide.

For self-employed

As a self-employed individual, you can claim mileage deductions on your annual tax return if you use your personal vehicle for business purposes. You must use the IRS mileage rate that corresponds to the year you are claiming mileage. E.g. if you are claiming mileage in 2022 for the previous year, you should use the IRS mileage rate 2021. On the next tax return in 2023, you claim mileage using the current mileage rate for 2022.

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Vehicles you can use the current mileage reimbursement rate for

You can use the IRS standard mileage rate if the vehicle you drive for business purposes is a car, van, panel truck or pickup.

Is there an alternative to using the current IRS mileage rate?

As a self-employed or a business owner, you have the option of calculating the actual costs of owning and operating your vehicle for business – this is called the actual expenses method. Learn more about the actual expenses method in our self-employed mileage guide.

The current IRS mileage rates for charity, moving and medical 

  • 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces
  • 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.

Read more about charity and medical mileage rates and rules

FAQ

The current mileage rate is 58.5 cents per mile driven for business use until June 30th. From July 1st, 2022, the rate increases with 4 cents to 62.5 cents per business mile.
The IRS mileage rate 2021 for cars (including vans, pickups, and panel trucks) was $0.56 per mile driven for business. Make sure to use the 2022 mileage rate for any trips you take after January 1st, 2022.
The IRS business mileage rate is determined each year by an annual analysis of the fixed and variable costs of operating a vehicle in the US, while the rate for medical and relocation expenses is determined by variable costs only.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal, tax or accounting advisor.