On June 9th, 2022, the IRS announced that the tax-free mileage reimbursement limit will be increased to 62.5 cents ($0.625) per mile, effective July 1 through December 31, 2022. This increase of $.04 per mile is in recognition of recent increases in gasoline prices nationwide.
Employers reimbursing their employees for mileage should begin using the new rate for mileage driven on or after July 1st. For those not currently offering mileage reimbursement as part of a total compensation plan for your employees, now may be a good time to consider adding this tax-free benefit. You can learn more about mileage reimbursement, fringe benefits, and all other matters related to household employment taxes, in the HomeWork Solutions Knowledge Center. You can also call our friendly and knowledgeable staff for a free consultation at 800.626.4829.