IRS Mileage Rates

Mileage Rates for 2023

The Internal Revenue Service recently issued the 2023 standard mileage rates used to calculate the deductible costs of operating an automobile for business or charitable purposes.

Beginning on January 1, 2023, the standard mileage rates will be:

  • 65.5 cents per mile for business miles driven, up 3 cents from the midyear increase setting the rate for the second half of 2022. This rate represents the maximum an organization can reimburse an employee without the reimbursement being treated as taxable income.
  • 14.0 cents (unchanged) per mile driven in service of charitable organizations. This represents the rate an individual (not an employee) can use on their tax return to deduct miles driven in service of a charitable organization.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile.

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.