The IRS has released (Notice 2023-03) the 2023 standard mileage rates. The rates are used to determine the deductible costs of using a vehicle for business, charitable, medical, or moving purposes. The new rates are effective January 1, 2023.
The new rates are as follows, compared to the 2022 rates:
| 2023 | 2022; effective 7/1/22 | 2022; effective 1/1/22 | |
| Business Use | 65.5 cents per mile | 62.5 cents per mile | 58.5 cents per mile |
| Medical and Moving Purposes | 22 cents per mile | 22 cents per mile | 18 cents per mile |
| Charitable Use | 14 cents per mile | 14 cents per mile | 14 cents per mile |
For taxpayers who use a vehicle for business purposes, the amount of the standard mileage treated as depreciation is 28 cents per mile. This amount was 26 cents per mile in 2022. For those who use a fixed and variable rate plan, the maximum standard automobile cost that may be used in computing the allowance is $60,800. This amount was $56,100 in 2022.
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