The Internal Revenue Service has announced new mileage rates for 2023 for use in calculating reimbursements or deductions for tax purposes:

• Business use: 65.5 cents a mile, up from 62.5 cents a mile from the 2022 mid-year increase.
• Medical use: 22 cents a mile, unchanged from the 2022 mid-year increase.
• Moving use: 22 cents a mile, unchanged from the 2022 mid-year increase.
• Charitable use: 14 cents a mile, the same as in 2022.

Additionally, the standard vehicle cost, used to calculate FAVR (Fixed and Variable Rate) programs, may not exceed $60,800, up from $56,100 in 2022.

To read more, IRS Notice 2023-03 may be found on the IRS website: irs.gov/pub/irs-drop/n-23-03.pdf.

Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.

About the Author

Jim Doherty

Jim Doherty has developed FAVR plans with many highly visible companies large and small, and has routinely documented significant program savings, heightened driver acceptance and satisfaction, and reduced fleet liability with greater control and administrative efficiency. Let's Connect