Taxpayers who take a reduced standard mileage rate on their tax returns for miles they recorded for business purposes will be able to use the figure of 65.5 cents per mile in 2023, the IRS announced this week.
That’s up 3 cents from the going rate for the second half of 2022.
Drivers who take the reduced standard mileage rate for medical or movement-related reasons will see no increase for 2023. The rate will remain at 22 cents per mile.
The same goes for standard rates for miles driven to serve charitable organizations. It will stay at 14 cents.
The IRS notes that standard mileage rates for business use are based on an annual study of the fixed and variable costs of operating a car, while rates for medical and moving purposes are based on variable costs. Rates for miles driven in charity service are regulated by law.
Only those who qualify for reduced standard mileage rates can receive it. The IRS offers more information on how to qualify for the following uses on its website:
Taking a reduced standard mileage rate is just one method of getting a tax break for qualifying expenses. Eligible taxpayers can choose to calculate the actual cost of using their vehicle and deduct that amount.
To learn about other federal income tax breaks, see:
