The IRS has announced new mileage rates for 2026. The standard mileage rate for business use will increase by 2.5 cents, while the rate for medical use will go down slightly. These changes are based on updated cost data and yearly inflation adjustments.
Mileage rates are used to figure out how much you can deduct when using a vehicle for business, medical, or charitable purposes. In some cases, they can also be used for moving expenses, but only for certain groups like active-duty military members and some members of the intelligence community.
Going Forward
Starting January 1, 2026, the new mileage rates will apply to cars, vans, pickup trucks, and panel trucks.
The business rate will be 72.5 cents per mile, which is an increase from 2025. The medical rate will be 20.5 cents per mile, which is slightly lower than last year. The moving rate will also be 20.5 cents per mile for qualified individuals, including certain military and intelligence personnel. The charitable rate will stay the same at 14 cents per mile.
These rates apply to all types of vehicles, including gas, diesel, hybrid, and fully electric.
The business mileage rate is based on both fixed and variable costs of running a vehicle. The medical and moving rates are based only on variable costs. The charitable rate is set by law and does not change based on these studies.
Read the Details
Under current tax law, most employees cannot deduct unreimbursed travel expenses. There are a few exceptions, including certain educators and specific types of workers.
Some deductions are still allowed when calculating adjusted gross income. This can apply to groups like military reservists, certain government officials, performing artists, and eligible educators.
In some cases, educators may also claim itemized deductions for certain travel expenses.
When it comes to moving expenses, only active-duty military members and certain intelligence personnel can claim those deductions if the move is required for their job.
Using the standard mileage rate is optional. Taxpayers can choose to track and deduct the actual costs of using their vehicle instead.
If you choose the standard mileage rate for a vehicle you own, you must use it in the first year the vehicle is used for business. After that, you can switch between the standard rate and actual expenses. If you lease a vehicle, you must stick with the standard mileage rate for the entire lease period, including renewals.
Final Thoughts
Mileage rates may seem simple at first, but the rules behind them can get confusing quickly.
Between changing rates, eligibility rules, and different ways to calculate deductions, it’s easy to make mistakes. Staying informed and working with the right professionals can help you avoid issues and make the most of your deductions.
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