2023 IRS Business Mileage Rate Calculator
Calculate your tax deduction based on official 2023 IRS standard mileage rates.
Estimated Tax Deduction
Understanding the 2023 IRS Mileage Rates
For the tax year 2023, the Internal Revenue Service (IRS) established standard mileage rates that taxpayers can use to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. These rates are designed to simplify the process of claiming expenses related to vehicle use without needing to track every penny spent on gas, repairs, and insurance.
2023 Official Rates Breakdown
| Category | Rate per Mile |
|---|---|
| Business Use | 65.5 cents |
| Medical or Moving Purposes | 22 cents |
| Charitable Organizations | 14 cents |
How to Use This Calculator
To determine your total deduction for 2023:
- Enter your total miles: Review your mileage logs or odometer readings for the 2023 calendar year.
- Select the purpose: Choose whether the miles were for business, medical/moving, or charity, as the rates vary significantly between these categories.
- Review the result: The calculator multiplies your mileage by the corresponding 2023 IRS rate to give you your total potential deduction.
Realistic Example
If you are a freelance consultant and drove 5,000 miles to meet clients throughout 2023, your calculation would be:
5,000 miles × $0.655 = $3,275.00
This amount would be recorded on your Schedule C (Form 1040) to reduce your taxable business income.
Record-Keeping Requirements
To successfully claim the mileage deduction, the IRS requires you to maintain a contemporaneous log. This log should include the date of the trip, the destination, the business purpose, and the number of miles driven. While you do not need to submit this log with your tax return, you must have it available in case of an audit.