As we mentioned earlier, there are two ways to claim the car mileage tax deduction – the standard method or the actual expenses method. In 2022, the rate was set at 58.5 cents per mile from January 1 to June 30. Then, because of rising inflation, the IRS increased the rate to 62.5 cents per mile from July 1 to December 31.
The
standard mileage deduction for 2023 is 65.5 cents per mile for the whole year. To calculate the standard mileage deduction, you just have to multiply the total number of business miles you have driven by the standard deduction rate.
This is the easiest option for taxpayers who don't use their car a lot for work, as you don’t have to keep track of too many other car-related expenses. You just have to track your miles. There are several apps (some of them are free) that you can use to do this.