Taxpayers who take the standard mileage rate deduction on their tax return for the miles they log for business purposes will be able to use a figure of 65.5 cents per mile in 2023, the IRS announced this week.
That is up 3 cents from the rate that was in effect for the latter half of 2022.
Drivers who take the standard mileage rate deduction for medical- or moving-related reasons will not see an increase for 2023. That rate will remain at 22 cents per mile.
The same goes for the standard rate for miles driven in service of a charitable organization. It will remain at 14 cents.
The IRS notes that the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile, whereas the rate for medical and moving purposes is based on variable costs. The rate for miles driven in service of a charity is set by law.
Only those who qualify for any standard mileage rate deduction can take it. The IRS offers more information about how to qualify for the following uses at its website:
Taking the standard mileage rate deduction is just one method of getting a tax break for qualifying expenses. Eligible taxpayers can choose instead to calculate the actual costs of using their vehicle and deduct that amount.
To learn about other federal income tax breaks, check out: