The Internal Revenue Service (IRS) has released the 2022 standard mileage rates. Beginning January 1, 2022, the standard mileage rates for the use of a car (van, pickup or panel truck) will be:
- 58.5 cents per mile driven for business miles driven, up from 56 cents in 2021
- 18 cents per mile driven for medical or moving purposes, up from 16 cents in 2021
- 14 cents per mile driven in service of charitable organizations, unchanged from 2021
Beginning January 1, 2022:
- A taxpayer must use 26 cents per mile as the portion of the business standard mileage rate treated as depreciation.
- $56,100 is the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.
- For employer-provided vehicles, employers may use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. $56,100 is the maximum fair market value (FMV) of cars, trucks and vans first made available to employees for personal use (up from $51,100 in 2021).