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IRS Mileage Rate 2023
April 17, 2024 - 2 min read

IRS Mileage Rates 2023

The 2023 IRS mileage rates are 65.5 cents per mile for business purposes, 22 cents per mile for medical and moving purposes and 14 cents per mile for charitable purposes.

The IRS increased the federal 2023 mileage rate for business purposes compared to 2022 by three cents. The IRS revisits the standard mileage rates each year and takes into account both fixed and variable expenses including fuel, repairs, insurance and road tax. 2022 saw a rise in fuel costs and inflation throughout the country, resulting in the business rate being raised for 2023. While gas costs stabilized, many other costs for maintaining automobiles remained high, resulting in a higher mileage rate for 2023.

Find the 2024 IRS mileage rate for your business miles reimbursements or deductions.

Using the 2023 business mileage rate

The standard mileage rate is the rate at which you can get reimbursed or take a tax write-off without getting taxed. You can use the 2023 federal mileage rate to claim a mileage deduction for the 2023 tax year. But, if you are an employed individual you will not be able to claim a mileage write-off.

For employees

As an employee, according to the Tax Cuts and Jobs Act of 2017, you cannot deduct mileage costs directly, but you can get reimbursed without it being taxed. Your employer may opt to not reimburse you, reimburse you less than the standard mileage rate per mile or reimburse actual expenses as long as you have provided proof in the form of receipts and invoices in addition to your mileage log.

Your reimbursement is not taxed as income unless it exceeds the standard mileage rate or in the case of actual expenses, the reimbursement is not substantiated with receipts of your vehicle costs.

For self-employed and business owners

As a self-employed individual or a business owner, you can claim your business mileage for 2023 from the IRS at tax time in 2024. You can claim mileage either by using the standard mileage deduction method or by claiming actual business-related vehicle expenses.

If you opt to use the standard mileage rate for your mileage deduction, you will have to multiply the business miles you've driven throughout 2023 by the standard mileage rate for 2023.

To file for the 2023 mileage deduction, you have to add the amount of the deduction on Schedule C (Form 1040), Part ll, Line 9. You also need to complete Part lV, in which you provide information about your vehicle, such as when you first started using it for business purposes and the total miles you drove throughout the year for business, commuting and other purposes, if your vehicle available for use during off-duty hours, if you or your spouse have another vehicle available for personal use and evidence you have to support your mileage claim

If you are a farmer, you should use Schedule F (Form 1040), Profit or Loss From Farming, and as an Armed Forces reservist, a qualified performing artist, or a fee-basis state or local government official, use Form 2106, Employee Business Expenses.

How and when to file for your deduction

You can fill out Schedule C, Schedule F and Form 2106 in paper form or online by using the IRS e-file.

The official deadline to file federal tax returns is April 15, 2024, and it is the date most states use, but check in with your local government as some states may have different tax filing deadlines.

You can get a six-month tax filing extension if you can't complete your tax return on time. The deadline to file a tax extension with the IRS is also April 15. Getting an extension doesn't change the payment deadline, it only gives you until October to complete all the paperwork.

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Calculate your 2023 business mileage deduction

You can use the calculator below to calculate your mileage deduction with the 2023 standard mileage rate of 65.5 cents per mile. Keep in mind that you cannot use this as proof for claiming your mileage, and will still need to provide a mileage log of the business trips you have recorded throughout all of 2023.

Input your 2023 mileage in the calculator below 

See the IRS notice announcing the 2023 mileage rates.

FAQ

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.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.
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