Mileage Rates Set for 2022
The IRS has issued the 2022 standard mileage rates used to calculate the deductible costs of operating an automobile for business and charitable purposes.
For business use of a car, van, pickup truck, or panel truck, the rate for 2022 will be 58.5 cents per mile, up from 56 cents per mile in 2021.
The rate for service to a charitable organization remains unchanged, set by statute at 14 cents per mile.
The rate paid for driving for medical care and for moving purposes for military personnel will be 18 cents per mile, up from 16 cents per mile in 2021.
For cars that employees use for business, the portion of the standard mileage rate treated as depreciation will be 26 cents per mile, unchanged from 2021.
While this information affects your taxes and employee reimbursements and questions regarding mileage should be asked of your accountant, it is important to note that if you and/or your employees are driving for work-related purposes, you should take some time to check your auto coverage through your business. The biggest question to ask - do you have it?