Calling all commuters! The IRS announced the 2023 “standard mileage rates.” Whenever you drive for business, medical reasons, or in support of a charitable organization, you may be able to get a mileage deduction and save money on your taxes.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be for 2023:
For miles driven from January 1, 2023 to December 31, 2023
- 65.5 cents per mile for business miles driven
- 22 cents per mile driven for medical purposes
- 14 cents per mile driven in service of charitable organizations
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be for 2022:
For miles driven from January 1, 2022 to June 30, 2022:
- 58.5 cents per mile for business miles driven
- 18 cents per mile driven for medical purposes
- 14 cents per mile driven in service of charitable organizations
For miles driven from July 1, 2022 to December 31, 2022:
- 62.5 cents per mile for business miles driven
- 22 cents per mile driven for medical purposes
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for a business is based on an annual study of the fixed and variable costs of operating an automobile, and the rate for medical purposes is based on the variable costs.
In general, you can only claim the deduction if you use your personal vehicle for your business, medical, or charitable purposes. For example, if you use a vehicle that was purchased by a business you cannot claim business mileage.
*Under the tax reform, you can no longer deduct mileage for moving unless you are active duty military, so the standard mileage rate for moving is not included.
Here’s a breakdown of what is covered for each:
Business Mileage
With business mileage, your commute to your regular place of business cannot be deducted when you’re an employee. If you are self-employed, any driving you do directly related to your business, like meeting with a client or going to a networking event, maybe deductible business mileage. If you were an employee in 2017 and had unreimbursed expenses for driving somewhere for work outside of your regular office, then you were able to take the standard mileage deduction on your 2017 taxes. However, under tax reform, miscellaneous expenses like unreimbursed mileage cannot be deducted beginning in 2018 through Dec. 31, 2025.
Medical Mileage
Good news! You can claim medical miles if you drive to receive medical care, which includes you, your spouse, or your children. The amount of this deduction is added to your medical deduction, which means it will only be included if your total medical expenses exceed 7.5% of your adjusted gross income, and you can itemize your tax deductions.
Charitable Mileage
You can also claim charitable mileage for the driving you do in service of a recognized 501 (c)(3) charitable organization. Another good reason to volunteer your time!
Come tax time, don’t worry about knowing these tax rules. You can meet with a TurboTax Live Full Service Self-Employed tax expert who specializes in self-employed taxes and can prepare your taxes from start to finish in one meeting. TurboTax Self-Employed finds industry-specific tax deductions you may not have even known were possible.