Filling up at the pump has been getting progressively more expensive. Acknowledging this increased cost, the Internal Revenue Service (IRS) has announced a four cents per mile increase in the optional standard mileage rate for business travel, effective July 1, 2022. The new mileage rate will be 62.5 cents per mile for the remainder of 2022. 

In addition, the mileage rates for deductible medical or moving expenses (for active duty military only) are also increasing by four cents on July 1, rising to 22 cents per mile. 

The optional standard mileage rate can be used by taxpayers to compute the deductible costs of operating an automobile for business use, instead of tracking actual costs. The rate is also frequently used by businesses to reimburse employees who use their personal vehicles for business purposes. 

For additional information on this or other tax issues please contact Gray, Gray & Gray at (781) 407-0300.