The IRS has recently released the standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes for the 2023 tax year as follows.
Beginning on January 1, 2023, the standard mileage rates for the use of a car will be:
- 65.5 cents per mile driven for business use, up 3 cents from 2022
- 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with 2022 increased rate
- 14 cents per mile driven in service of charitable organizations. The rate remains unchanged from 2022
As a reminder, the IRS states that under the Tax Cuts and Jobs Act, taxpayers cannot claim miscellaneous itemized deductions for any unreimbursed employee travel expenses as well as claim any deduction for moving expenses, unless they are active-duty members of the Armed Forces who are moving under orders to a permanent change of location.
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