Mileage Rates for 2023

The IRS has issued updated optional standard mileage rates for 2023. These rates are often used to calculate the deductible cost of operating a vehicle for business purposes as well as used by employers for calculating employee reimbursements for business mileage driven with personal vehicles. Beginning January 1, 2023, mileage rates will be:

• 65.5 cents per mile driven for business use
• 22 cents per mile driven for medical care or moving purposes for qualified active-duty members of the Armed Forces
• 14 cents per mile driven related to service of charitable organizations

The mileage rate for business use is the only rate changed from the second half of 2022. Last year was unusual with a mid-year rate increase. Historically, rates are updated on an annual basis.

The special industry transportation per diem rate for meals and incidental expenses is remaining unchanged for 2023 and is $69 for any locality of travel in the continental United States and $74 for any locality of travel outside the continental United States.

Sources: IRS Notices 2023-03 and 2022-44