Mileage Deduction Rates Rise for 2022

With travel for business purposes rebounding as pandemic restrictions are eased, it is good to know that you will be able to deduct a little more for your automobile mileage in 2022. The standard mileage rate for 2022 will be 58.5 cents per mile, an increase of 2.5 cents per mile over the 2021 rate. The portion of the business standard mileage rate that is treated as depreciation for purposes of calculating reductions to basis will be 26 cents per mile for 2022, the same as for 2021.

The standard mileage rate for use of an automobile for purposes of obtaining medical care will be 18 cents per mile, up 2 cents from 2021; while the rate for providing services to a charitable organization remains the same at 14 cents per mile (which is set by statute).

Taxpayers may use the business standard mileage rate for their use of an automobile as an ordinary and necessary business expense. Keep in mind that the Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction under Sec. 67 for unreimbursed employee business expenses, including those incurred in the use of an automobile, for tax years 2018 through 2025. However, the business standard mileage rate can still be used during this period.

For additional information on deducting automobile expenses or other business costs, please contact Gray, Gray & Gray at (781) 407-0300.

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