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2026 IRS Standard Mileage Rates – In the world of tax deductions and reimbursements, the IRS standard mileage rate plays a crucial role for businesses, self-employed individuals, and anyone tracking vehicle expenses. As we head into 2026, the Internal Revenue Service (IRS) has released updated rates that reflect changes in fuel costs, vehicle maintenance, and other variable expenses. Whether you’re a freelancer logging business miles, a volunteer driving for charity, or an active-duty military member relocating, understanding these rates can help maximize your deductions or reimbursements.
This article breaks down the 2026 mileage rates, compares them to 2025, explains how to apply them, and covers alternatives like actual expense tracking. We’ll also touch on related rates from the General Services Administration (GSA) for federal employees. All information is sourced from official announcements to ensure accuracy and reliability.
What Are IRS Standard Mileage Rates?
The IRS standard mileage rate is an optional deduction method that simplifies calculating vehicle-related expenses for tax purposes. Instead of tracking every receipt for gas, repairs, and depreciation, taxpayers can multiply their qualifying miles by the applicable rate. These rates are updated annually based on studies of fixed and variable costs, such as fuel, insurance, and wear and tear.
The rates apply to various categories:
- Business use: For self-employed individuals, employees, or business owners driving for work.
- Medical purposes: For trips to receive medical care.
- Moving purposes: Limited to active-duty members of the Armed Forces and certain intelligence community members.
- Charitable purposes: For volunteer work with qualified organizations.
These rates are effective for miles driven starting January 1, 2026, and apply to electric, hybrid, gasoline, and diesel vehicles alike.
2026 IRS Mileage Rates Breakdown
Here are the official IRS standard mileage rates for 2026:
| Category | 2026 Rate (cents per mile) | Change from 2025 |
|---|---|---|
| Business use | 72.5 | +2.5 cents |
| Medical purposes | 20.5 | -0.5 cents |
| Moving purposes | 20.5 | -0.5 cents |
| Charitable contributions | 14 | Unchanged |
- Business Rate (72.5 cents per mile): This increase accounts for rising costs in vehicle operation, including a bump in the depreciation component from 33 cents in 2025 to 35 cents in 2026. It’s ideal for gig economy workers, salespeople, or anyone deducting business travel.
- Medical and Moving Rates (20.5 cents per mile): These rates, based solely on variable costs like fuel and maintenance, saw a slight decrease. Moving deductions are restricted to qualifying military and intelligence personnel.
- Charitable Rate (14 cents per mile): Set by federal statute, this rate remains steady and applies to miles driven for eligible nonprofit activities.
Note: If you’re using the standard rate for business, you can’t also deduct actual expenses like parking fees or tolls separately—those must be added on top.
How Do the 2026 Rates Compare to Previous Years?
The 2026 updates show mixed adjustments:
- Business rates have been trending upward, from 70 cents in 2025 to 72.5 cents now, reflecting inflation in auto costs.
- Medical and moving rates dipped slightly from 21 cents in 2025, possibly due to stabilized fuel prices.
- Charitable rates haven’t changed since 1997, as they’re fixed by law.
For context, here’s a quick historical glance:
| Year | Business (cents) | Medical/Moving (cents) | Charitable (cents) |
|---|---|---|---|
| 2024 | 67 | 21 | 14 |
| 2025 | 70 | 21 | 14 |
| 2026 | 72.5 | 20.5 | 14 |
These adjustments are informed by annual IRS studies, ensuring they align with real-world expenses.
GSA Mileage Rates for 2026: For Federal Employees
If you’re a federal employee or contractor, the General Services Administration (GSA) sets privately owned vehicle (POV) reimbursement rates, which often align closely with IRS figures. Effective January 1, 2026:
- Automobile (if no government vehicle available): 72.5 cents per mile
- Automobile (if government vehicle available): 20.5 cents per mile
- Motorcycle: 70.5 cents per mile
- Airplane: $1.78 per mile (converted from nautical miles)
- Moving purposes: 20.5 cents per mile
These rates are used for official travel and relocation, providing a benchmark for government-related reimbursements.
How to Use the 2026 Mileage Rates for Tax Deductions?
To claim these deductions:
- Track Your Miles: Use apps like MileIQ or a simple logbook to record dates, purposes, and odometer readings.
- Choose Your Method: Opt for the standard rate or itemize actual expenses (e.g., gas, repairs)—whichever is higher. Once chosen for a vehicle, you must stick with it for the year.
- File Accordingly: Report on Schedule C (business), Form 2106 (employees), or Schedule A (medical/charitable).
- Special Rules: For business use over 50% of total miles, additional depreciation rules apply.
Always consult a tax professional, as rules can vary by situation. The IRS emphasizes that these rates don’t apply to fleet operations with five or more vehicles.
Standard Mileage vs. Actual Expenses: Which Is Better?
While the standard rate simplifies things, calculating actual expenses might yield bigger deductions if you have high costs (e.g., expensive repairs or low-mileage efficiency). Factor in:
- Depreciation
- Insurance
- Fuel and oil
- Repairs and tires
Run the numbers both ways—many tax software programs can help compare.
Final Thoughts on 2026 Mileage Rates
The 2026 IRS mileage rates offer a straightforward way to handle vehicle deductions amid fluctuating costs. With business rates up and medical/moving slightly down, taxpayers should review their driving habits to optimize savings. Stay updated via the official IRS website, as rates can be adjusted mid-year in rare cases.
For the most accurate advice, reach out to a certified accountant or visit irs.gov. Planning ahead with these rates can make tax season smoother and more rewarding.