IRS ANNOUNCES STANDARD MILEAGE RATES FOR 2023
On December 29, 2022, the IRS released it’s annual optional standard mileage rates for 2023. The standard mileage rate is used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. The charitable rate is set by statute.
In June 2022, the IRS increased the optional standard mileage rates for the second half of 2022 due to gasoline price increases to help taxpayers and others who use the rates. Due to the midyear adjustment, the business and medical/moving mileage rates increased 4 cents from the rates at the start of 2022.
Beginning January 1, 2023, the optional standard mileage rates are as follows:
- 65.5 cents per mile driven for business use
- 22 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The business mileage rate increased 3 cents from the midyear increase implemented for the second half of 2022. The medical or moving rate remains the same from the midyear increase.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
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