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IRS Announces 2026 Mileage Rates: Business Up, Medical Down

12/31/2025

Summary

IRS Updates Mileage Rates

The Internal Revenue Service (IRS) announced updated mileage rates for 2026, effective January 1, 2026.
The business mileage rate will increase to 72.5 cents per mile, a rise of 2.5 cents from 2025.
The medical and moving mileage rates will decrease to 20.5 cents per mile, reflecting a half-cent drop.
The charitable mileage rate remains unchanged at 14 cents per mile.
Taxpayers can choose between the standard mileage rate and actual vehicle expenses for deductions.

Summary

IRS Raises Mileage Rate

Starting January 1, 2026, the Internal Revenue Service (IRS) set the standard mileage rate at 72.5 cents per mile, up 2.5 cents from 2025.
This higher rate will increase costs for distribution companies that reimburse employees for business vehicle use.
This is the second consecutive year of rising mileage rates.
Delivery fleets are not subject to this rate.
Many businesses adopt the standard mileage rate to calculate deductible vehicle costs.

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IRS Updates Mileage Rates

The Internal Revenue Service (IRS) announced updated mileage rates for 2026, effective January 1, 2026.
The business mileage rate will increase to 72.5 cents per mile, a rise of 2.5 cents from 2025.
The medical and moving mileage rates will decrease to 20.5 cents per mile, reflecting a half-cent drop.
The charitable mileage rate remains unchanged at 14 cents per mile.
Taxpayers can choose between the standard mileage rate and actual vehicle expenses for deductions.

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