If you have been feeling the pinch at the gas pumps lately, at least there is some tax consolation: The standard mileage rates used by certain taxpayers in lieu of deducting actual expenses are going up for the last six months of 2022. Effective on July 1, 2022—
- The rate for business driving increases to 62.5 cents per mile from 58.5 cents per mile;
- The rate for driving for medical reasons increases to 22 cents per mile from 18 cents per mile; and
- The rate for moving expenses for active duty military personnel increases to 22 cents per mile from 18 cents per mile.
The prior rates still apply to driving during the first six months of 2022. The rate for charitable travel, which is set statutorily, remains at 14 cents per mile.
Note: With the higher costs of driving, it may be even more advantageous, although not as convenient, to do the extra recordkeeping for actual expenses if you qualify.