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IRS Mileage Rate 2023
November 24, 2022 - 2 min read

IRS Mileage Rate 2023

With 2022 coming to an end, we are looking forward to the new year and a new IRS announcement on the 2023 mileage rates in the US. Normally, the IRS publishes the official rates for the upcoming year sometime in December, so you’re not far off from knowing how much you can get per mile for your business-related driving.

In mid-2022, the IRS raised the current year’s mileage rates due to spiking gas and car maintenance prices. While it is not unprecedented for the IRS to change the rates mid-year, the decision was very welcomed by all who often drive for work-related duties.

The rise in the current year’s mileage rate was 4 cents, bumping it up from 58.5 to 62.5 cents per business mile. The moving and medical rate also went up by 4 cents, from 18 to 22 cents per mile.

IRS mileage rates 2023

While we wait for the IRS to announce the official 2023 mileage rates, we can’t help but wonder if they will increase or remain the same as during the second half of 2022. We do not think a decrease in rates is likely, as it has certainly not become any more affordable to run and maintain a vehicle in the US compared to the beginning of 2022.

Considering that fuel prices are not at a peak high anymore as back in June and July of 2022, there is a chance the IRS mileage rate 2023 remains at the same levels, currently being:

  • 62.5 cents per mile for business purposes
  • 22 cents per mile for medical and moving purposes
  • 14 cents per mile for charitable purposes
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Will the IRS mileage rate 2023 go up?

The IRS revisits the official mileage rates each year and takes into account expenses such as fuel, repairs, insurance, road tax and more. 2022 saw a rise in fuel costs and inflation throughout the country, resulting in the rates being updated from July 1st, 2022. Considering that gas costs are not on the same upward trend, the IRS might decide to continue using the current mileage rates after revisiting them.

Who can use the IRS mileage rate 2023

The 2023 mileage rate is set to benefit those who drive for work with their personal vehicles and cover the associated themselves.

As a self-employed individual, you can claim your business mileage for 2023 at tax time from the IRS at the beginning of the following year. Read more about claiming mileage from the IRS as self-employed.

If you are employed, it becomes a bit more complicated - according to the Tax Cuts and Jobs Act, employees cannot deduct mileage from the IRS, even if their employer doesn’t reimburse them for business-related driving. That means the only reimbursement for out-of-pocket business mileage expenses can come from your employer. While it is advisable that employees use the official IRS mileage rate 2023, note that they are not obliged to, and may reimburse you at a lower rate, or reimburse actual expenses so long you have proof in the form of receipts. Find out more about mileage reimbursement for employees.

Want to be the first one to know about the 2023 mileage rates? Keep on checking this article - we will keep an eye out for the IRS announcement regarding the 2023 mileage rates and publish the new rates as soon as they are out.

FAQ

The current mileage rate in the US is 62.5 cents per business mile. Not that the rate for 2022 up until June 30th was 58.5 cents per mile.
While the IRS revisits the official mileage rate every year, it is not a guarantee they change it every time. However, most years do see a change, reflecting the changing costs of running and maintaining vehicles in the US.
The IRS mileage rate changes at the beginning of a new tax year - on January 1st, and is valid for the duration of that year.

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