Q. "What is the 2023 Standard Mileage Rate?"
Answer:
Instead of tracking the actual cost of using a personal vehicle for work purposes, the standard mileage rate is used to simplify the process. Once miles are tracked, employers pay tax-free reimbursements to employees. In 2023:
The IRS raised the standard mileage rate to 65.5 cents per mile, effective January 1, 2023.
Rates apply to electric, hybrid-electric, gasoline and diesel vehicles and are meant to compensate for rising gas prices in 2023.
Despite this three cent increase from the 2022 mid-year adjustment for the standard mileage rate, the rate for miles driven in service of a charitable organization is still only 14 cents per mile, the same as last year. We would encourage you to, instead, pay the standard rate as a best practice because the cost of using a personal vehicle is still the same even for those who work in ministry!