In response to the rising cost of gas, the IRS announced that it will increase the optional standard mileage rates for the deductible costs of business travel by 4 cents, to 62.5 cents per mile. The change will become effective July 1. 

The rates for deductible medical and moving expenses for active-duty members of the military will also increase by 4 cents, to 22 cents per mile. The 14 cents-per-mile rate for charitable organizations, set under Sec. 170(i) of the Internal Revenue Code, will not change. 

According to Accounting Today, the IRS usually updates the mileage rates only once a year—in the fall for the next calendar year. It made an exception this year because of rising gasoline prices. The last time the IRS made such a mid-year mileage increase was 11 years ago. 

The optional business standard mileage rate allows taxpayers to compute the deductible costs of operating a car for business use instead of tracking the actual costs. The federal government and many businesses use this rate as a benchmark to reimburse their employees for mileage. 

Rates for the first half of the year can be found in Notice 2022-23