The IRS recently released the 2023 mileage rates for businesses to use as guidance when reimbursing workers for applicable miles driven within the year. The rates tend to increase yearly to account for rising fuel and vehicle and maintenance costs and insurance rate increases.
Businesses can use the standard mileage rate to calculate the deductible costs of operating qualified automobiles for business, charitable, medical, or moving purposes. Keep reading for the updated mileage rates and some reminders for mileage reimbursements and deductions.
Standard mileage rates for cars, vans, and pickups or panel trucks are as follows:
Use Category | Mileage rate (as of Jan. 1, 2023) | Change from the previous year |
Business miles driven | $0.655 per mile | $0.03 increase from mid-year 2022 |
Medical or moving miles driven* | $0.22 per mile | $0.00 increase from mid-year 2022 |
Miles driven for charitable organizations | $0.14 per mile | Note: Only congress may adjust the mileage rate for service to a charitable organization by a Congress-passed statute. |
*Moving miles reimbursement for qualified active-duty members of the Armed Forces
When reimbursing employees for miles driven, keep the following in mind:
To review your organization’s mileage reimbursement policy and any alternate methods for calculating appropriate reimbursement amounts, reach out to our team of knowledgeable professionals today.
Receive Free financial tips & Tax Alerts!
"*" indicates required fields
While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is…
Navigating a financial audit can be daunting, but with the right preparation and understanding, it can become a manageable and beneficial process. Financial audits help ensure the accuracy of your…
Planning for retirement is a crucial aspect of managing a small business. Unlike traditional employees who may have access to employer-sponsored benefits, business owners must proactively manage their retirement savings….