IRS Increases 2023 Standard Mileage Rates
Published January 03, 2023
The Internal Revenue Service (IRS) has released Notice 2023-03 providing the 2023 standard mileage rates. Beginning January 1, 2023, the standard mileage rates for the use of a car (van, pickup or panel truck) will be:
- 65.5 cents per mile driven for business, up from 62.5 cents in 2022
- 22 cents per mile driven for medical or moving purposes, unchanged from 2022
- 14 cents per mile driven in service of charitable organizations, unchanged from 2022
Beginning January 1, 2023:
- A taxpayer must use 28 cents per mile as the portion of the business standard mileage rate treated as depreciation.
- $60,800
is maximum standard automobile cost that may be used in computing the
allowance under a fixed and variable rate (FAVR) plan.
- For employer-provided vehicles, employers may use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. $60,800 is the maximum fair market value (FMV) of cars, trucks and vans first made available to employees for personal use (up from $56,100 in 2022).