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.
Is your company seeking a more accurate vehicle reimbursement solution than the IRS-standard mileage rate? Is the IRS-standard mileage rate creating unpredictable cashflows and becoming too expensive for your company right now? 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.
AutoReimbursement.com’s article on IRS Mileage Rate 2023 Alternative Solutions and Vehicle Reimbursement Program Comparison Guide explains alternative reimbursement programs, like a Fixed and Variable Rate Program, and how it can provide cost savings to your company as well as benefit your drivers.