IRS increases deductible costs for mileage by 3 cents per mile in 2023

PROMO 660 x 440 People - Family Cars Auto Vehicles Family Man Woman Children Kids Driving - iStock - Solovyova
Published Saturday, December 31, 2022
by Tom Gantert

(The Center Square) - The optional standard rate for deductible costs for operating an automobile for business will increase to 65.5 cents per mile in 2023, a 3-cent increase from the current rate, according to the IRS.

The new rates begin January 1 and apply to electric and hybrid-electric vehicles, gasoline, and diesel-powered vehicles, according to an IRS news release.

The IRS has increased the deductible costs for automobiles on business from 53.5 cents in 2017 to 58 cents in 2019. The IRS set the rate at 58.5 cents a mile in January 2022 and then upped it 4 more cents in June 2022 with a mid-year increase.

The IRS said the mid-year increase in June was in recognition of the gasoline price increases. The U.S. average price of a gallon of gas rose to $4.92 per gallon in June, the highest average ever in the U.S. according to the U.S. Energy Information Administration.

The average price of a gallon of gas dropped from $4.92 in June to $3.20 in December, the lowest since October 2021. may earn an affiliate commission if you purchase products or services through links in an article. Prices, when displayed, are accurate at the time of publication but may change over time. Commissions do not influence editorial independence.

The Kiowa County Press is an independent newspaper published in Eads, Kiowa County, Colorado, and to the world at