Skip to main content
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
Hiscox Insurance
Menu Toggle
  • Home
  • Small Business Insurance Toggle Menu Toggle Menu
  • Why Hiscox Toggle Menu Toggle Menu
  • Resources Toggle Menu Toggle Menu
  • Policy Management Toggle Menu Toggle Menu
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
  • About
  • Get a Quote Get a Quote
  • About
  • Get a Quote Get a Quote
  • Blog Home
    Start Your Business
    Grow Your Business
    Protect Your Business
    Celebrate Courage
    Search

    Twenty-Four Seven

    Sign up to get the latest small business news delivered right to your inbox.
    Close Close
    Grow Your Business
    June 28, 2022
    IRS has changed the gas mileage deduction rates

    Timely changes to mileage deduction rates announced by IRS

    Finances | Management
    By:
    Karen Doyle

    Share Image

    Embed Image

    Copy

    Share Article:

    Everyone knows the price of gas is going up fast, and that affects the price of nearly everything. There is one bright spot, though – the IRS has increased the amount you can deduct per mile if you use your car for business in the second half of 2022. 

    From July 1, 2022 through December 31, 2022, you can deduct 62.5 cents for each mile you drive, up from 58.5 cents for the first half. This reflects the increase in the cost of gasoline, although the mileage deduction also takes into account other costs associated with driving, like insurance, depreciation and wear and tear on your vehicle. 

    Note that the change is for the second half of the year only, so you’ll need to keep accurate records of your mileage by month.

    Related: 8 Tax deductions contractors shouldn’t leave on the table

    Typically, the IRS sets the mileage deduction rate in the fall for the upcoming year, and it remains the same all year long. The last time the IRS made a mid-year adjustment to the rate was 2011. 

    If you reimburse mileage expenses for your employees, you may want to use the new mileage rate when compensating them for their driving expenses. 

    You can also use the actual cost of operating your vehicle for business as a deduction, instead of the mileage deduction. but that typically requires more record-keeping. 


    Protect Your Business

    Protect the business you’ve worked so hard to build. Get a fast, free quote and your business could be covered today.

    Get a Quote
    Get a Quote
    Subscribe to our newsletter

    Related Articles

    4 Min Read
    small business owner looking at computer screen with business profile

    5 ways to boost your business right now with this Google freebie

    Tools & Templates | Marketing

    A Google Business Profile can be extremely valuable, giving a platform for small business owners like you to tell the world about your business, and the best part? It's free!

    Read More

    6 Min Read
    A small business owner uses a tablet at work

    3 things all small business owners should be considering right now

    Small Business Insights

    We asked small business owners about their level of confidence in the economy, their industry and their business. Hear what they had to say. 

    Read More

    3 Min Read
    what is the metaverse and what does it mean for your small business

    The Metaverse: what you need to know about the Next Big Thing

    Technology | Marketing

    The metaverse is the next technology breakthrough. Here’s what you need to know so your small business isn’t left behind. 

    Read More


    We’re here to help.
    We provide tailored insurance for the specific risks you face, so you can take the right risks to grow your business.
    Get a Quote
    Get a Quote

    Footer menu 1

    • What We Cover
      • Business Insurance
      • General Liability Insurance
      • Professional Liability Insurance
      • Errors and Omissions
      • Cyber Security Insurance
      • Workers Compensation
      • Other Coverage
    • Who We Cover
      • Small Business Owners
      • LLC
      • Sole Proprietors
      • Entrepreneurs
      • Side Hustle
      • Contractors
      • Home Businesses
    • For Our Customers
      • Refer a Friend Program
      • Covid-19 Response
      • Claims Center
    • For Business Owners
      • Save with our Partners
    • About Hiscox
      • About Us
      • Careers
      • Contact Us
      • Hiscox Corporate
      • Investors
      • Foundation
      • Newsroom
      • We Stand Together
      • Affiliate Partner Program

    Footer menu 2

    • Accessibility
    • Site Map
    • Privacy Policy
    • Terms of Use
    • Legal Notices
    • Español

    Feefo Reviews: Hiscox rated 4.8/5 with 1,926 reviews between January 1, 2021 - January 1, 2022

    © 2022 Hiscox Inc. All rights reserved. Underwritten by Hiscox Insurance Company Inc., 30 N. LaSalle St., Suite 1760, Chicago, IL 60602. As of December 31, 2021, HICI had admitted assets of $1,250,758,353 and policyholders surplus of $332,792,666. Total liabilities were $917,965,687 (inclusive of $433,752,764 of loss reserves) and paid-up capital stock was $4,242,000.

    icon-facebook
    icon-youtube
    icon-twitter
    icon-linkedin