The new year brings a new standard mileage rate, welcome news to business travelers battling the effects of the recession.
The IRS has increased the optional standard mileage rate that should be used when figuring out deductible costs of operating a vehicle for business purposes. The new rate for 2023 is 65.5 cents per mile. This is a 3-cent increase.
The rate for those driving for medical or moving reasons for qualified active-duty armed forces members now sits at 22-cents per mile. Those logging time in the car while providing service to charitable organizations have an unchanged rate of 14-cents per mile.
All the rates outlined above took effect on January 1, 2023.
Please let us know if you have any questions about this or other tax-related matters.