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

(File Photo: Source for Photo: FILE – A sign outside the Internal Revenue Service building in Washington, on May 4, 2021. Effective immediately, the Internal Revenue Service will end its decades-old policy of making unannounced home and business visits — in a nod to worker safety and combatting scammers who pose as IRS agents. (AP Photo/Patrick Semansky, File)

Noah Haswell, Beaver County Radio News

(Washington, D.C.) According to a release in Washington, D.C. today from the IRS, the IRS announced today 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 and beginning January 1st, 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 will apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles. Optional standard mileage rates are used for the calculation of the deductible costs of operating vehicles for business, charitable, and medical purposes.