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February 1, 2023 - 2 min read

The Current IRS Mileage Rate

The IRS sets a mileage rate each year. The rate is used to calculate your mileage deductions or reimbursement for accrued business mileage with your personal vehicle.

The IRS has announced the new 2023 mileage rates:

  • 65.5 cents per mile for business-related driving
  • 22 cents per mile for moving and medical purposes
  • 14 cents per mile for miles in the service of charitable organizations

Log your business travel and calculate your reimbursements automatically. Driversnote is always up to date on laws and the IRS mileage rates. Sign up for Driversnote for free. 

When to use the current IRS mileage rate

The IRS sets the standard mileage rate each year, and it represents the ceiling for tax-free mileage reimbursement or tax deductions.

The current IRS mileage rate for employees

Businesses often choose to reimburse employees by the standard mileage rate method, as it is the simplest in terms of administration work. If this is the case for you, then you use the current IRS mileage rate to calculate the reimbursement you should receive from your employer on a monthly basis.

If you are located in California, check out dedicated article on California mileage reimbursement.

Keep in mind that it's up to your employer to set the rate and the rules for reimbursement, but the IRS's standard mileage rate is the limit for what is tax-deductible. If you're paid more per mile than the current IRS mileage rate, anything above it is considered taxable income.

If you want to learn more about other employee reimbursement methods, take a look at our mileage reimbursement for employees guide.

The current IRS mileage rate for self-employed

As a self-employed individual, you can claim mileage deductions on your annual tax return if you use your personal vehicle for business purposes. You must use the IRS mileage rate that corresponds to the year you are claiming mileage. on your tax return in 2023, you claim mileage using the mileage rate for 2022.

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Vehicles for which you can use the federal mileage rate

You can use the IRS standard mileage rate if the vehicle you drive for business purposes is a car, van, panel truck or pickup.

Is there an alternative to using the current IRS mileage rate?

As a self-employed or a business owner, you have the option of calculating the actual costs of owning and operating your vehicle for business – this is called the actual expenses method. Learn more about the actual expenses method in our self-employed mileage guide.

The federal mileage rates for charity, moving and medical

  • 22 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces
  • 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022

Read more about charity and medical mileage rates and rules

FAQ

The current mileage rate for 2023 is 65.5 cents per mile driven for business.
The IRS mileage rate 2022 for cars (including vans, pickups, and panel trucks) was $0.585 per mile driven for business until June 30. From July 1, the IRS increased the rate to $0.625. Make sure to use the correct 2022 mileage rate for any trips in 2022.
The IRS business mileage rate is determined each year by an annual analysis of the fixed and variable costs of operating a vehicle in the US, while the rate for medical and relocation expenses is determined by variable costs only.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal, tax or accounting advisor.