The IRS raised the optional business mileage rate to 76 cents per mile from 72.5 cents for eligible travel on or after July 1, giving self-employed workers and businesses a larger deduction as fuel costs remain elevated.
IRS Broadens Relief Beyond Business Drivers
First reported by Fox News on Thursday, the agency said the change "results from recent increases in the price of fuel." It last made a midyear adjustment in 2022, when gasoline surged after Russia invaded Ukraine.
Medical and qualifying moving mileage rose to 23.5 cents from 20.5 cents, while charitable mileage remains fixed at 14 cents. Moving deductions generally apply only to eligible active-duty military personnel and certain intelligence-community members.
The rate covers more than gasoline. The IRS bases the business figure on fixed and variable vehicle costs, and it applies to gasoline, diesel, hybrid and electric vehicles. Eligible taxpayers may instead claim actual expenses.
