IRS Increases Standard Mileage Rate to 65.5 Cents

The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 65.5 cents per mile driven, up 3 cents from a rare midyear increase in 2022. The increased rate was effective as of Jan. 1, 2023 (Notice 2023-03).

For counties that follow the IRS policy regarding standard mileage rates, the following information may be important: the IRS has recently announced that the standard business mileage rate for 2023 is 65.5 cents per mile, up from 62.5 cents per mile during the final six months of 2022.

For 2023, the standard mileage rate for medical and moving expenses will remain 22 cents per mile. The standard mileage rate for trips connected to charitable activities will remain unchanged at 14 cents per mile for 2023.