The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2022, will be 58.5 cents per mile, up 2.5 cents from 2021 [Notice 2022-03, 12-17-21].
In addition, the 2022 standard rate for miles driven for medical or moving purposes will increase to 18 cents per mile, up from the 16 cents-per-mile rate in effect during 2021.
The standard mileage rate for operating a passenger car for charitable purposes, which is set by law, will stay at 14 cents per mile in 2022.
Vehicles Put Into Service in 2022
For vehicles put into service in 2022, the cents-per-mile valuation method can be used only if the vehicle does not have a fair market value of more than $56,100 ($51,100 in 2021). For employer-provided vehicles under the fleet-average valuation rule, applicable to an employer with a fleet of 20 or more automobiles, the 2022 maximum value is $56,100 for an automobile ($51,100 in 2021). Note: The fleet-average valuation rule may not be used if any of the automobiles in the employer's fleet exceeds its maximum allowable value.
For more information, see the APA Compliance Update, Business Standard Mileage Rate Increases to 58.5 Cents in 2022. Compliance updates are emailed to APA members and are also available on the Compliance Updates webpage.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Curtis E. Tatum, Esq., is APA’s In-House Counsel and Director of Federal Payroll Compliance.
