IRS Increases Business Standard Mileage Rate to 65.5 Cents Effective Jan. 1, 2023
After a rare mid-year 2022 increase in the business standard mileage rate from 58.5 cents to 62.5 cents per mile, the IRS announced on Dec. 29, 2022 that the 2023 rate will increase another 3 cents up to 65.5 effective Jan. 1, 2023.
The IRS also announced the standard mileage rate for 2023 will be:
- 22 cents per mile for medical or moving purposes for qualified active-duty members of the armed forces, consistent with the increased midyear rate set for the second half of 2022.
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.
These rates apply to electric and hybrid-electric automobiles, as well as vehicles powered by gasoline and diesel, the IRS announced.
The standard mileage rate is used to compute the costs that are deductible by businesses and self-employed individuals for operating an automobile for business use, as an alternative to tracking actual costs. Employers often use the standard mileage rate to pay tax-free reimbursements to employees who use their own vehicles for business.
SHRM’s HR Week, Jan. 9, 2023. “IRS Boosts Standard Mileage Rate”, by Kathryn Mayer, January 3, 2023.
We Can Help You Succeed
J. Kent Staffing can help you with your staffing needs or your job search. Reach out to us today to start the process.