The IRS Increased the Standard Mileage Deduction for 2023
Due to the recent high fuel costs, the Internal Revenue Service has raised the standard mileage deduction for the business use of a vehicle. It means you can recover more of the costs of operating your business vehicles.
In 2023, the IRS raised the standard mileage rate for businesses by $0.03. It brings it up to $0.655 per mile, which you can deduct from your 2023 tax bill.
Because gas prices had risen to abnormal highs in 2021 and 2022, mileage rates were raised at the start of 2022 and midyear—which was highly unusual. In January 2022, the mileage rate was $0.585 per mile. Starting in July 2022, the IRS raised the mileage rate another $0.04, bringing it to $0.625 per mile….