The IRS mileage rate in 2022 is currently set at 62.5 cents per mile and may continue in 2023. However, this rate is likely to increase to 65 cents in 2023 if you consider the rate of inflation.
This IRS mileage rate is based on the cost of operating a vehicle. This can vary depending on the type of vehicle, the condition of the vehicle, gas prices, the type of fuel used, and other factors.
What is the Standard Mileage Rate?
The standard mileage rate is set by the Internal Revenue Service (IRS) and is used as the default cost per mile when taxpayers claim a tax deduction for business expenses, charity expenses, medical expenses, and moving expenses. The federal mileage rate is a variable rate and depends on the expenses, and adjustments are made every year.
Taxpayers have the option to use the standard mileage rate to calculate the deductible costs of operating an automobile for business and certain other purposes. Since July 1, 2022, this standard mileage rate for business travel is 62.5 cents per mile. Military personnel on active duty can avail the new rate of 22 cents to claim mileage reimbursement until further revisions.
Types of Mileage Rates
For Business Expenses
You can also deduct business expenses, such as travel costs for traveling from your office to client offices. You can also deduct business expenses when you travel for conferences, training, or meetings.
For Charity Expenses
Volunteers traveling to collect charity funds can claim mileage deductions.
New IRS Standard Mileage Rates
Starting in 2022, businesses in the United States will be able to deduct business expenses at the rate of 62.5 cents, which is an increase from the 58.5 cents per mile applicable in the first half of 2022. The mileage rate for charitable donations remains at 14 cents per mile.
The increase in the mileage rate is meant to encourage businesses to use more fuel-efficient vehicles and help charities save money on their travel expenses. The new rate will apply to all business expenses and charitable donations, including travel, hotel, and car rental expenses.
How to track Mileage
Mileage tracking is a great way to keep track of your mileage and see your progress over time. Most mileage tracking apps allow you to track your miles driven, as well as your average and maximum speeds. Many apps also allow you to track your fuel consumption and calculate your carbon emissions.
The best mileage tracker app will also allow you to export your data to a spreadsheet or a graph. This makes it easy to see your progress over time and to compare your results with those of friends or family members.
MileageWise is one of the best mileage tracker apps on the market today offering several benefits:
- Provides a dedicated VIP mileage log preparation service.
- Deducts an average of $12,000 in taxes for the 1st tax year for each car you own.
- Uses AI-powered technology to help recreate your forgotten past mileage from client locations and your past journeys.
- Tracks vehicle movement and Car Bluetooth usage with 3+1 automatic modes.
- Records trip data in a 100% IRS-compliant mileage log.
MileageWise has entered the mileage tracker app market quite late but has already overtaken several of the established brands with its superior features. You can download MileageWise’s app on the App Store and Google Play Store.