IRS Mileage Rate Calculator 2023
Calculate your tax deduction based on 2023 standard mileage rates
Understanding the 2023 IRS Mileage Rates
The Internal Revenue Service (IRS) adjusts the standard mileage rates annually to account for the fluctuating costs of operating a vehicle, including fuel, repairs, and insurance. For the tax year 2023, the rates saw a significant increase compared to the beginning of the previous year to combat inflation and high gas prices.
2023 Standard Mileage Rates
| Category | Rate per Mile |
|---|---|
| Business Use | 65.5 cents |
| Medical or Moving (Active Military) | 22 cents |
| Charitable Organizations | 14 cents |
How to Use the IRS Mileage Calculator 2023
To accurately calculate your tax deduction for the 2023 tax year, follow these steps:
- Enter Total Miles: Input the total number of miles driven specifically for the qualified purpose. Commuting from home to a regular place of business is generally not deductible.
- Select the Purpose: Choose between Business, Medical/Moving, or Charitable. The IRS applies different rates to each category based on the nature of the expense.
- Calculate: Our tool multiplies your mileage by the official 2023 rate to provide your total potential deduction.
Record-Keeping Requirements
To claim a mileage deduction on your tax return, the IRS requires meticulous record-keeping. You should maintain a log that includes:
- The date of each trip
- The starting point and destination
- The business (or charitable/medical) purpose of the trip
- The total mileage driven for each trip
Standard Mileage Rate vs. Actual Expenses
Taxpayers have two choices when deducting vehicle expenses: the standard mileage rate or the actual expense method. The standard mileage rate is much simpler, as it only requires tracking miles. The actual expense method requires tracking all vehicle costs, including gas, oil changes, tires, repairs, insurance, and registration fees, then multiplying the total by the percentage of business use. Most individuals find the standard rate more beneficial and less administratively burdensome.