IRS Boosts Business Standard Mileage Rates for 2023

The IRS issued Notice 2023-03, which contains the 2023 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.  

Last year, the IRS made a rare midyear mileage rate adjustment in June as a way to combat soaring inflation and high gas prices.  The standard mileage rate for 2023 will be:

• 65.5 cents per mile for business operations, up 3 cents from the 2022 midyear rate.  
• 22 cents per mile driven for medical or moving purposes, no change from the 2022 midyear rate.
• 14 cents per mile driven in service of charitable organizations, co change from the 2022 midyear rate.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.