The IRS has announced the 2023 optional standard mileage rates for calculating deductible costs associated with using an automobile for business, charitable, medical or moving purposes.
As of Jan. 1, 2023, the standard mileage rate for the use of a car, van, pickup or panel truck is 65.5 cents per mile for business miles driven. The standard mileage rate is 22 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service to a charitable organization.
During the second half of 2022, the business mileage rate was 62.5 cents per mile and the medical and moving rate was 22 cents per mile. The charitable rate is set by statute and remains unchanged.
It is important to note under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.