Mileage Rates Increased for 2023
For 2023, the standard mileage rate for business travel will be 65.5 cents per mile, up 3 cents from the rate effective at the start of the year. The rate for deductible medical or moving expenses (available for active-duty members of the military) will remain 22 cents. These new rates become effective January 1, 2023. The IRS provided legal guidance on the new rates in Announcement 2023-03.
The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after January 1, 2023, and to mileage allowances that are paid both to an employee on or after January 1, 2023, and for transportation expenses paid or incurred by the employee on or after January 1, 2023.
Read More: Mileage Reimbursement Guide for Employers
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.