IRS Raises Business Mileage Rate for 2023 Deductions

The IRS increased the standard mileage deduction rate to 65.5 cents for vehicles used for business in 2023, the second increase in a year.

The new rate is effective for costs incurred on or after Jan. 1, according to an agency notice posted Thursday.

• The notification comes after the agency made a mid-cycle increase to the mileage deduction rate in June following a spike in gas prices, coming amid US efforts to isolate Russia over its war against Ukraine.
• The June change was unusual for the IRS, and increased the rate ...