The Internal Revenue Service (IRS) has announced the optional standard mileage rate used to calculate the costs of operating a car, van, pickup truck, or panel truck for business purposes in 2026. The 2026 rates for automobiles used for charitable, medical, or moving purposes were also announced.
The new rates beginning January 1, 2026, are:
- 72.5 cents per mile for business miles driven, up 2.5 cents from the 2025 rate.
- 20.5 cents per mile driven for medical purposes, down a half cent from the 2025 rate.
- 20.5 cents per mile for moving purposes for qualified active-duty members of the Armed Forces (and now under the OBBBA, certain members of the intelligence community), reduced by a half cent from the 2025 rate.
- 14 cents per mile driven for gratuitous services to a charitable organization; the rate is set by statute and remains unchanged from previous years.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
The government sets the mileage rate for charitable usage, but the mileage rate for commercial use is based on a yearly review of the fixed and variable costs of running a car. The rate for relocating and medical purposes, on the other hand, is based only on the variable costs from the yearly research.
There is no miscellaneous itemized deduction for unreimbursed employee travel expenditures, except for some teacher expenses, according to the legislation. However, you can still deduct expenses that are deductible when figuring out your adjusted gross income. This includes certain members of the reserve component of the Armed Forces, some state and local government officials, certain performing artists, and eligible educators. Alternatively, qualified teachers can take an itemized deduction for some travel expenditures that their employer doesn’t cover. Also, only active-duty military troops or select members of the intelligence community can claim a deduction for moving expenses incurred while relocating to a permanent change of station.
You don’t have to use the regular mileage rates. Instead, taxpayers can figure out how much it really costs to use their car.
People who own and use a car for business must select to use the regular mileage rate in the first year the car is available for commercial usage. Later on, customers can choose to use the regular mileage rate or the real costs.
If you lease a car and use the normal mileage rate, you must use that method for the whole lease period, even if you renew it.
You can read the complete IRS announcement for more information or specifics on how and when to apply the mileage rate expense.
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