The IRS recently released Notice 2022-03, which provides the optional 2022 standard mileage rates for taxpayers.  These rates are used to compute the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.  In addition, the notice also provides the amount taxpayers must use to calculate reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be sued in computing the allowance under a fixed and variable rate plan (FAVR). 

The standard mileage rate for 2022 is $.585 per mile for business use.  The standard mileage rate is $.14 per mile for charitable purposes (unchanged from 2021), when rendering services to a charitable organization.  For medical purposes, the standard mileage rate is $.18 per mile (an increase of $.02 from 2021).  Note that this same $.18 rate is used for moving expenses, but the moving expense deduction is suspended by TCJA for tax years before January 1, 2026, except for members of the Armed Forces.     

Taxpayers may choose to calculate the actual costs of using their vehicle rather than using the standard mileage rates.  If a standard mileage rate is initially used for business purposes, a taxpayer can choose either the standard mileage rate or actual expenses in later years.  In the case of a leased vehicle, if the standard mileage is used in the initial year, it must be used for the entire lease period. 

For autos used for business, the part of the business standard mileage rate treated as depreciation is $.26 per mile for 2022 (it was also $.26 per mile for 2021). 

For purposes of computing the allowance under a FAVR plan in 2022, the standard auto cost may not exceed $56,100 (includes autos, trucks, and vans).

For purposes of the fleet-average valuation rule and the vehicle cents per mile valuation rule, the maximum FMV of autos (including trucks and vans) first made available to employees in calendar year 2022 is $56,100.