The Internal Revenue Service has issued 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. As of Jan. 1, 2023, the standard mileage rates for the use of a vehicle are:
- 65.5 cents for every mile of business travel driven (up 3 cents from July 2022);
- 22 cents per mile for medical or moving purposes (same as July 2022); and
- 14 cents per mile driven in service of charitable organizations (same as 2022).
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers have the option of calculating the actual costs of using their vehicle rather than using standard mileage rates.
Learn more about deducting mileage costs as a minister with Pensions and Benefits Memo #11 – Auto and Other Business Expense Reimbursements.