IRS Raises Mileage, Expenses Rate Midyear Amidst Rising Inflation

Amidst rising inflation, the Internal Revenue Service (IRS) announced on June 9 an increase in the standard mileage rate for the final six months of 2022.

Effective July 1, 2022, the standard mileage rate for business travel will rise 4 cents, to 62.5 cents per mile. The new rate for medical or moving expenses (available for active-duty members of the military) will be 22 cents, also up 4 cents from the start of the year.

The federal government and many businesses use the business standard rate as a benchmark to reimburse their employees for mileage. 

"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," 
said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.” 

Typically, the IRS updates mileage rates once per year in the fall for the next calendar year. The IRS last made a midyear rate increase in 2011.