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 deducated 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. 

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