The 2023 IRS mileage rate has been published. The Internal Revenue Service publishes annual standard mileage rates for business, medical and moving expenses.
These rates are based on the estimated costs of operating an automobile, including fuel, maintenance and depreciation.
If you are using your vehicle for business, medical or moving purposes, you may qualify for a deduction based on the IRS mileage rate.
For 2023, the IRS mileage rate is as follows:
- Business: 65.5 cents per mile
- Medical: 22 cents per mile
- Moving: 22 cents per mile
The business mileage rate is the most commonly used rate, as it can be used to deduct the cost of driving for work-related purposes.
The medical and moving mileage rates are less commonly used, but they can be helpful for deducting the cost of driving for medical appointments or to relocate for a new job.
How to Use the IRS Mileage Rate
To use the IRS mileage rate, you must first determine the number of miles you drove for the qualified purpose. Once you know the number of miles, you can multiply that number by the applicable mileage rate.
For example, if you drove 10,000 miles for business in 2023, you may be able to deduct 655,000 cents, or $6,550.
You can claim the IRS mileage rate on your federal income tax return. You will need to keep a log of your mileage, as well as any other expenses related to your driving.
Other Considerations
There are a few other things to keep in mind when using the IRS mileage rate.
First, the rates are only for the cost of operating a passenger automobile. If you drive a van, pickup truck or other vehicle, you will need to adjust the rates accordingly.
Second, the rates are not for the cost of parking or tolls. You will need to keep track of those expenses separately and deduct them on your tax return.
Finally, the IRS mileage rates are subject to change. The rates for 2024 will be announced in the fall of 2023.
Conclusion
The IRS mileage rate can be a helpful way to deduct the cost of driving for business, medical or moving expenses. By keeping track of your mileage and other expenses, you may be able to claim a deduction that can save you money on your taxes.
Additional Resources
- IRS Standard Mileage Rates: https://www.irs.gov/tax-professionals/standard-mileage-rates
- How to Track Your Mileage: https://www.irs.gov/taxtopics/tc510
- Deducting Business Expenses: https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
When in doubt about how to calculate the mileage rate, it is always wise to speak with a tax professional.