After the IRS made a rare midyear increase to the standard mileage rate last year, we weren’t sure if we’d see another one for 2023. But good news, the rate to calculate the deductible costs of operating a vehicle for business purposes increased by 3 cents to 65.5 cents per mile, effective January 1, 2023.
The rate for charitable work remained unchanged at 14 cents per mile, as well as the 22 cents per mile rate for medical or moving purposes for active-duty members of the armed forces.
The portion of the business standard mileage rate that is treated as depreciation for purposes of calculating reductions to basis will be 28 cents per mile for 2023.
You can, of course, continue to calculate the actual costs of using your vehicle rather than using the standard mileage rates, if you prefer. You can read the full IRS announcement here.