New Standard Mileage Rates Announced

The IRS has issued new optional standard mileage rates for cars, vans, pickups and panel trucks.

The revised rates, which became effective January 1, 2023, are as follows:

• 65.5 cents per mile for business travel driven (up three cents from 2022’s mid-year increase)
• 22 cents per mile driven for medical or moving purposes for certain military personnel (consistent with the 2022 mid-year increase)
• 14 cents per mile driven in service of charitable organizations (remains the same)

The standard rate for business use is determined through an annual study of fixed and variable costs of vehicle operation, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is established on variable costs alone.

On June 9, 2022, the IRS announced an increase in the optional standard mileage rate for the remainder of the 2022 calendar year. The mid-year adjustment was uncommon but was implemented due to an increase in national gasoline prices. For the second half of 2022, the standard rate increased to 62.5 cents per mile for business travel, a four-cent boost from the first half. The rate per mile for medical care or moving expenses increased to 22 cents per mile, also a four-cent increase, while the per-mile rate for charitable organizations remained unchanged. 

If you have questions regarding the implications of vehicle expense adjustments or mileage rates, contact your local Schneider Downs tax professional.

About Schneider Downs Tax Services 

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