Standard Mileage Rates for 2023
The IRS announced an increase in the optional standard mileage rates for 2023. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
The College has adopted the optional standard mileage rates for the use of a car (also vans, pickups or panel trucks) as follows:
Rates for 2023:
65.5 cents per mile for business miles driven
22 cents per mile for medical or moving purposes*
14 cents per mile driven in service of charitable organizations**
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil.
*The rate for medical and moving purposes is based on the variable costs, such as gas and oil.
**The charitable rate is set by law.
For more information see the IRS News Release.