IRS Updates Business Standard Mileage Rates for 2023

The IRS released updated optional standard mileage rates that are used to calculate the deductible costs of using a car for business, charitable, medical or moving purposes. In 2023, the optional standard mileage rate for using a car for business purposes will be 65.5 cents per mile driven for business purposes (up three cents from the second half of 2022). The rate for miles driven for moving or medical purposes in 2023 will be 22 cents per mile.The charitable rate remains unchanged at 14 cents per mile. However, the suspension of all miscellaneous itemized deductions and the deduction for moving expenses for the 2018025 tax years means that most taxpayers who previously deducted these expenses will no longer be entitled to do so. Those individuals who were previously entitled to take the business mileage expense deduction as an above-the-line deduction, however, many continue to do so.Taxpayers may deduct moving expenses if they are members of the Armed Forces on active duty moving under orders to a permanent change of station.For more information on deducting business-related travel expenses, visit Tax Facts Online. : Q 8745. Note: Q is updated.