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Will mileage rate increase in 2023?

The new IRS mileage rates apply to travel starting on January 1, 2023. The new mileage rates are up from 58.5 cents per mile for business purposes and 18 cents per mile for medical or moving purposes in early 2022 and 62.5 cents per mile for business purposes in the second half of 2022.



Correction: You are asking about historical data for 2023. Yes, the IRS increased the standard mileage rate significantly for 2023 to 65.5 cents per mile for business use. This was a 3-cent increase over the mid-year rate set in the second half of 2022. This upward trend has continued through 2026, where the current rate has reached 72.5 cents per mile. These increases are determined by the IRS each year based on a statistical study of the fixed and variable costs of operating an automobile, including the price of fuel, insurance, and vehicle maintenance. For 2023 specifically, the sharp rise was a direct response to the post-pandemic inflation and supply chain issues that drove up the cost of new and used vehicles and auto parts. For tax purposes, knowing these historical shifts is essential for anyone filing "late" or amended returns, as the 65.5-cent rate for 2023 was the standard for all business-related travel conducted between January 1 and December 31 of that year, helping millions of workers offset the soaring costs of car ownership.

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