New mileage rates from IRS

The Internal Revenue Service issued the optional standard mileage rates for calculating the deductible costs of operating a car for 2023.

Starting Jan. 1, 2023, the rates for using a car, van, pickup or panel truck will be:

  • 65.5 cents per mile for business use;
  • 22 cents per mile for medical or moving purposes for qualified active-duty members of the Armed Forces; and,
  • 14 cents per mile for charitable purposes.
Gas Pump Charges
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Only the first rate is changed, rising three cents from the previous rate, which was set in mid-2022. It is based on an annual study of the fixed and variable costs of operating a vehicle, while the medical and moving rate is based on variable costs, and the charitable rate is set by statute. The latter two rates are unchanged.

The rates apply to gasoline- and diesel-powered vehicles, as well as electric and hybrid electric cars.

Taxpayers have the option of calculating how much it actually costs to use their vehicle.

More details are available in Notice 2023-03.

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