The 2023 federal mileage reimbursement rates have arrived. These are issued by the Internal Revenue Service (IRS) to calculate costs for operating vehicles for business, charitable, medical or moving purposes. In summary, the business mileage rate increased two and a half cents for business travel and two cents for medical and certain moving expenses from 2022.
2023 IRS Mileage Reimbursement Rates
Beginning January 1, 2023, standard mileage rates for the use of a car, van, pickups or panel trucks will be:
- 65.5¢ per mile driven for business (up 3¢ from the midyear increase established in the second half of 2022)
- 22¢ per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (consistent with the increased midyear rate established in the second half of 2022)
- 14¢ per mile driven in service of charitable organizations (unchanged from 2022)
The mileage rates above can be used to calculate how much employers should reimburse employees who use their own cars for business purposes. Taxpayers always have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates. For more information, please refer to the IRS press release.