The Internal Revenue Service has issued the 2022 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
58.5 cents per mile for business miles driven, an increase of 2.5 cents from the rate for 2021.
18 cents per mile driven for medical or moving purposes, increased from 16 cents for 2021.
14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 2.5 cents per mile and the medical and moving expense rates each increased 2 cents per mile from 2021. The charitable rate is set by statute and remains unchanged.
The standard mileage rate for business 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 always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements are described in Notice IR-2021-251, posted December 17, 2021 on IRS.gov. It contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Human Resource Manager
The Episcopal Diocese of Long Island
(516) 248.4800 ext. 111