Normally adjusted for inflation only once per year, the Internal Revenue Service (IRS) announced a rare, mid-year adjustment to the optional standard mileage rates for the second half of 2022. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
In recognition of the recent surge in nationwide gasoline prices, the new IRS standard mileage rate for business travel will be 62.5 cents per mile – up 4 cents from the rate effective at the start of the year – and will apply from July 1 to December 31, 2022, as set forth in the modified IRS Notice 2022-3, 2022-2 I.R.B. 308.a.
Other rates for mileage reimbursement are detailed in the table below:
This rate increase will affect mobility programs:
- If you are an NEI client who has elected to follow IRS guidelines for your expense administration, nothing is needed at this time. NEI will incorporate the mileage change into your expense reimbursement policy, as agreed.
- If you are an NEI client who has not elected to follow the government established mileage rates in the past, NEI will continue to follow your prescribed rates unless you advise that your company is changing the rate. Please contact your NEI Client Relations Manager directly, if you would like to confirm or update your current rate.
NEI will continue to keep you informed of any additional IRS tax changes throughout the year. If you have any question about these changes, please contact your NEI Client Relations Manager at 800.533.7353.