For employees who use their privately owned vehicle for Government business, Reimbursement Rates have been announced for the new year.
There are several people employed by the Federal Government who have to use a vehicle to perform their job’s duties. Except for instances when a specialty vehicle is needed, many of these feds have the option to use their own car or van. Even some USPS mail carriers, especially those with delivery routes in more rural areas, might be required to us their own automobile – or have choice to use one that is either privately owned or provided by the government. When using their own vehicle, money for gas based off mileage is reimbursed. (And as always, here’s your friendly reminder that typical commuting to an on-site office does not qualify for reimbursement.)
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In 2021, the rate per mile was $0.56 and increased to $0.585 per mile the following year. This rate is for those who had no choice but to use their own automobile as the government was unable to provide a ride. Unlike most years however, gas prices were so high in 2022 that there was a mid-year adjustment made to mileage rates, effective July 1. Now, another significant increase has been recently announced by the GSA. The 2023 reimbursement rate was set at $0.655 per mile.
GSA Reimbursement Rates
The following chart shows all the mileage rates that the General Services Administration (GSA) established at the start of January of this year, as well as the July 2022 adjustment and the rates that were set roughly a year ago.
| Gas Rates: Vehicle | 2022 (1/1 – 6/30) | 2022 (7/1 – 12/31) | 2023 |
| Car/Van (if no government vehicle was furnished) | 58.5 cents per mile | 62.5 cents per mile | 65.5 cents per mile |
| Car/Van (if a government vehicle was available) | $0.18/mile | $0.22/mile | $0.22/mile |
| Motorcycle | 56.5 cents per mile | 60.5 cents per mile | 63.5 cents per mile |
| Airplane | 151.5 cents per mile | $1.81/mile | $1.74/mile |
For the few feds who operate their privately owned aircraft to perform their government duties, the reimbursement rate interestingly went down 7 cents from the July 2022 increase that saw the airplane mileage rate shoot up 29½ cents from the rate listed at the start of 2022. Also, these federal workers have to convert nautical miles to statute miles - 1 nautical mile equals 1.15077945 statute miles for reference.
Also, if you are relocating in 2023, the GSA will reimburse mileage for moving purposes at a rate of 22 cents per mile.
And this chart shows the per diem reimbursement rates for meals, lodging, and incidental purchases – which were published in the summer. The reason for differing times for releasing these rates is due to the fact that gas rates are set for the calendar year while the other reimbursement figures are effective for a given fiscal year.
| Per Diem Rates | Fiscal Year 2022 | Fiscal Year 2023 |
| Lodging | $96/day | $98/day |
| Meals & Incidental Purchases | $59/day | $59/day |
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**Written by Benjamin Derge, Financial Planner, ChFEBC℠ The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
