The IRS Standard mileage rates used to calculate the deductible costs of operating a car (includes vans, pickups or panel trucks) for business, charitable, medical or moving purposes are shown in the table below. These are effective from Jan. 1.
|Year||Business Related Driving||Medical or Moving Purposes||Charitable Service Driving|
|2023 (forecast)||60 cents||19 cents||15 cents|
|2022||58.5 cents||18 cents||14 cents|
|2021||56 cents||16 cents||14 cents|
The business mileage rate is based on an annual study of the fixed and variable costs of operating an automobile.
The rate for medical and moving purposes is based on the variable costs.
The charitable rate is based on statute and has remained unchanged for several years.
The IRS issues these optional standard mileage rates to enable business’ and individuals to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Under recent tax law, tax filers cannot cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, nor can they claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.
Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.