IRS Announces 2023 Mileage Rates

The IRS has issued its 2023 optional standard mileage rates* used to calculate the tax-deductible costs of operating a vehicle for business, charitable, medical, or moving purposes.

Starting January 1, 2023, the standard mileage rates for the use of an automobile, including vans, pickup trucks, or panel trucks, is as follows:

• 65.5 cents per mile driven for business use (up from 62.5 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 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 (unchanged from 2022).

*These rates apply to electric and hybrid-electric vehicles, as well as gasoline and diesel-powered vehicles.
**Taxpayers cannot claim a deduction for moving expenses unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

Should you have any questions about the 2023 mileage rate deduction, we encourage you to reach out to your trusted Weiss & Company LLP tax advisor.