IRS Increases Mileage Rate for 2023

 By Barry L Weller, EA

Starting January 1, 2023 the standard mileage rates are increasing 3 cents per mile for business travel.  These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.  Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Below is a chart that reflects these changes and the appropriate effective dates.

Barry L Weller, EA is the president of Barry Weller & Associates, Inc. with offices at 19 N Reading Ave, Boyertown, PA 19512   Phone (610) 367-8280    He is an enrolled agent, licensed to represent taxpayers before the IRS.