Standard Mileage Rates for 2023
At the end of December, the IRS issued the 2023 optional standard mileage rates. The rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The rates for 2023 have increased for normal business and medical purposes. The new rates are as follows:
- 65.5 cents per mile driven for business use. This is 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.
What is the Standard Mileage Rate? 
The Internal Revenue Service sets the standard mileage rate for taxpayers who deduct the expense using their personal vehicles for business, charitable, or medical purposes. The IRS adjusts the rate annually. The rate generally differs depending on whether the vehicle is used for business, charitable, or medical expenses. The rates are determined by different things depending on what the vehicle is used for. If the vehicle is used for business, the rate is determined by variable and fixed costs of driving a car. For medical purposes, the rate is based only on the variable cost of driving a car. The rate of standard mileage regarding charitable purposes is based on minimums established by federal law and is meant to reimburse taxpayers for the unreimbursed, out-of-pocket costs of volunteer work.
More Info
For more info on how you can cut costs and save your business money, reach out today so we can help you. We can specifically help you with ProActive tax planning to help you save money on your taxes every year. Visit our get support tab of our website to get started.
Click the link below to take a look at our ProActive tax planning process.
Click here for ProActive Tax planning
