For the first time since 2011, the IRS has made a midyear adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and other specific purposes. The agency said the change is in recognition of recent gasoline price increases.
As a result of increased gas prices, the IRS has raised standard mileage rates.
Standard Rates as of July 1:
- Business Use
- The standard rate for business travel has been increased to 62.5 cents per mile.
- Moving (Armed Forces Only) or Medical Care
- The standard rate has been increased to 22 cents per mile.
- Charitable Purpose
- The standard mileage rate remains 14 cents per mile.
