Tax Alert: Business Mileage Rate Increases for 2023
The IRS issued the optional standard mileage rates for calculating the deductible costs of operating a car for 2023. Starting January 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.
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. In contrast, the medical and moving rate is based on variable costs, and the charitable rate is set by statute. The latter two rates are unchanged.
Source: Accounting Today.