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.
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