IRS Regulations

The Internal Revenue Service (IRS) has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile while the rate for medical and moving purposes is based on the variable costs.

Effective January 1, 2023, the IRS has increased the optional standard mileage rate by 3 cents from the mid year 2022 rate to 65.5 cents per mile driven. The rate for medical or moving purposes for qualified active-duty members of the armed forces remains 22 cents per mile (the same as the higher mid year rate for the second half of 2022). The rate for service on behalf of charitable organizations is 14 cents, which is set by statute and remains unchanged from 2022. The rates defined above are applicable to electric and hybrid electric automobiles, as well as gasoline and diesel powered vehicles.