The IRS has released the new standard mileage rates that will apply beginning January 1, 2026. These rates determine how much taxpayers can deduct for business, medical, moving (where applicable), and charitable mileage. Below is the IRS announcement in full for your reference:

IRS Notice – IR-2025-128 (Dec. 29, 2025)

IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

WASHINGTON — The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• 72.5 cents per mile driven for business use, up 2.5 cents from 2025.

• 20.5 cents per mile driven for medical purposes, down a half cent from 2025.

• 20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.

• 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.

The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.

While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle. Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.

The article is meant for informational purposes only. Please contact me directly to discuss how this applies to your individual tax situation.