The IRS announced 2023 mileage rates just in time to ring in the new year. This coming year, business rates increase by 3 cents per mile.?
Beginning Jan. 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022
22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022
14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.