IRS mileage rate 2023

Standard versus itemized deductions

The standard deduction amount depends on your filing status, whether you’re 65 or older, are blind, and whether another taxpayer can claim you as a dependent.

On the other hand, itemized deductions are certain expenses the IRS allows you to deduct from your income to determine your taxable income. The more deductions you claim, the lower your taxes for the year will be. You could even get a bigger refund.

There are specific circumstances and limits when itemizing deductions, and we will go into the ins and outs of writing off your mileage below.

Since every taxpayer’s situation is different, a local Jackson Hewitt Tax Pro can help you decide whether to itemize or take the standard deduction. But the general rule is easy—you get to pick the bigger of the two: Either the standard deduction that all taxpayers are entitled to, or itemized deductions, if larger.

What is the IRS mileage rate for 2023?

Now we can dive in with further detail. The 2023 IRS mileage rates go beyond gig workers and encompass different rates for distinct travel purposes.

The rate for 2023 is 65.5 cents per mile for business purposes, 22 cents per mile for medical and moving purposes, and 14 cents per mile for charitable purposes. These rates change periodically, as you can see below in the chart, so work with your tax professional on what may count toward different reasons for travel and the reimbursement rates.

Rates in cents per mile

Source: Internal Revenue Service (IRS)

How Is the IRS mileage rate calculated?

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile, according to the IRS. These costs include both fixed and variable mileage expenses.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

The standard mileage rate for business use 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.

What’s more, you may use the standard mileage rate, but generally must opt to use it in the first year the car is available for business use. Then in later years, if you own your car, you can choose either the standard mileage rate or actual expenses. If you’re leasing your vehicle, you must use the standard mileage rate method for the entire lease period (including renewals) if you chose the standard mileage rate.

Claiming mileage on your self-employment taxes

You must keep a timely log of your business mileage. The log should contain details of each business trip, including the date, mileage, destination and purpose of the trip. You should also log your total mileage for the year.

What other car expenses are tax deductible?

You can keep a list of all expenses for the year, not just business ones, along with your mileage for each job and your total mileage for the year. You must keep a mileage log, including total annual mileage for the vehicle, for either type of vehicle deduction. These expenses may include:

• Gas
• Oil
• Car repairs
• Interest on an auto loan
• Depreciation
• Licenses
• Lease payments
• Registration fees
• Insurance
• Garage rent
• Tires
• Tolls

What forms do I use to claim mileage?

If you're deducting mileage for medical or charity purposes, you'll need to itemize on your tax return. You’ll be using IRS Form 1040 and Schedule A, as well as any other supporting forms your Tax Pro may decide you need. If you are making a military move, you will claim the mileage on IRS Form 3903.

If you're self-employed, you’ll claim your mileage deduction as a business expense on your Schedule C. You should bring in all your expenses throughout the year to see if it’s best to deduct your mileage or your car expenses.

Is it better to write off gas or mileage?

It’s important to note that you may deduct standard mileage using the rates we outlined above OR your actual expenses, also listed above, but not both. A Jackson Hewitt Tax Pro can work with you to figure out what the higher number is for your specific situation and how to proceed. We can work with you to decide what is best for your situation, but there is no hard-and-fast rule around what is ‘better.’

Cases where the standard mileage rate may not apply

It’s crucial to discuss the details of your travel and use of your vehicle with your tax professional, but there are cases in which travel is not eligible for mileage deductions. For example, driving from your home to your workplace and back is commuting. It's not deductible on either your business or your individual return.

What’s more, if you stop at the store on the way home from a business trip, the remaining miles from the store to home are generally considered personal mileage, so you generally can't include them.

We’ve covered mileage deductions and other car expense deductions at a high level in this piece, but your local Tax Pro would be able to help you with any questions you may have as you file your 2023 taxes, and beyond. Remember, you never have to tax alone.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

More about Mark Steber Our Editorial Policy