You get a little bump for business use. But it’s pretty much more of the same for moving, military, and charity purposes.
The IRS’s new mileage rates, which started Jan. 1, 2023, are:
- 65.5 cents per mile for business use, up 3 cents from the midyear increase in 2022,
- 22 cents per mile for medical or moving purposes for qualified active-duty military members, which didn’t change since the 2022 midyear increase, and
- 14 cents per mile driven in service of charitable organizations, which is unchanged from the past few years.
Just like in past years, the new rates are used to “calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.” The rates apply to cars, vans, pickups, and panel trucks.
Remember that under the Tax Cuts and Jobs Act, you can’t claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. You also can’t claim a deduction for moving expenses unless you’re an active-duty military member under permanent change of station orders. (For more information, see Moving Expenses for Members of the Armed Forces.)
Other tips:
- You can also always calculate your vehicle’s actual costs, rather than standard mileage rates.
- If you own your vehicle, for the first year your vehicle is available for business use, you have to use the standard rate. In subsequent years, you can then use the standard rate or actual expenses.
- If you lease your vehicle, you can choose between the standard or actual expense option. But if you opt to use the standard mileage rate, you can’t switch to the actual expense rate later.
If you have questions about any of the IRS’s other recent updates, please let us know.