2022 Mileage Reimbursement Rate – $0.625/Mile

IRS Mileage Rate 2022 is expected to be adjusted higher due the to economic inflation. The mileage rate is used by employers to calculate reimbursement to their employees for using personal vehicle for work. Additionally, the mileage rate is use by business owners who are claiming deduction for their mileage expenses.

$0.585 – Mileage Reimbursement Rate 1/1 through 6/30/2022

$0.625 – Mileage Reimbursement Rate 7/1 through 12/31/2022

Mileage for Business vs Medical vs Charity

There are 3 separate categories for mileage rates: business use, medical use, and charities. If you are a business owner you can claim tax deductions based on the mileage rate for businesses.

Employees can figure out their mileage reimbursement based on the IRS mileage rate, so too can the self-employed. As of 2017, employees cannot claim tax deductions for using their personal vehicle for work purposes.

The tax deduction for medical reasons is much lower than the business mileage rate. However, you can still claim it for transportation for medical reasons. To calculate the deduction, multiply the miles driven by the medical mileage rate.

The costs of operating a vehicle is approximately 40 cents per mile (depending on the type of vehicle), so this is not nearly enough. However, for medical or charity use, it might be better to deduct the actual expenses rather than claiming on the mileage rate.

IRS Mileage Reimbursement Rate 2021

Currently, the IRS has not given notice or guidance the business mileage rate for the 2021 tax year. We will update this post  when the business mileage rate is available for fiscal year 2021.