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The IRS mileage rate for 2026 has been officially announced, providing key updates for taxpayers who deduct vehicle expenses for business, medical, moving, or charitable purposes. These standard mileage rates offer a simplified way to calculate deductions without tracking every single cost associated with operating a vehicle. In this article, we’ll break down the 2026 IRS mileage rates, compare them to 2025, explain who can use them, and discuss alternatives like actual expense deductions. Whether you’re a self-employed professional, a charitable volunteer, or an active-duty military member, understanding these rates can help maximize your tax savings.
What Are the IRS Standard Mileage Rates?
The IRS sets optional standard mileage rates each year based on studies of vehicle operating costs. These rates apply to the use of cars, vans, pickups, or panel trucks. For 2026, the rates reflect adjustments for fuel prices, maintenance, and other variable factors. Importantly, these rates are effective starting January 1, 2026, and apply to miles driven during the calendar year.
Here’s a quick overview of the 2026 rates in a table for easy reference:
| Purpose | 2026 Rate (cents per mile) | Change from 2025 |
|---|---|---|
| Business | 72.5 | +2.5 |
| Medical | 20.5 | -0.5 |
| Moving (qualified) | 20.5 | -0.5 |
| Charitable | 14 | Unchanged |
These adjustments are designed to align with economic conditions, with the business rate increasing due to higher overall operating costs.
2026 IRS Business Mileage Rate
The most commonly used rate is for business purposes, which applies to self-employed individuals, freelancers, and employees who use their personal vehicles for work-related travel (if not reimbursed by their employer). For 2026, the IRS business mileage rate is 72.5 cents per mile, an increase of 2.5 cents from the 2025 rate of 70 cents per mile. This rate covers all miles driven for business, including travel to client meetings, job sites, or supply runs.
This rate applies equally to gasoline, diesel, hybrid, and fully electric vehicles, making it inclusive for modern fleets. If you’re tracking business mileage, tools like mileage logs or apps can help ensure accurate deductions on your tax return.
2026 IRS Medical and Moving Mileage Rates
For medical purposes, such as driving to doctor’s appointments or pharmacies, the 2026 rate is 20.5 cents per mile, down 0.5 cents from 21 cents in 2025. This rate is based solely on variable costs like fuel and oil, as determined by the IRS’s annual study.
The moving mileage rate for 2026 is also 20.5 cents per mile, matching the medical rate and reflecting a 0.5-cent decrease from 2025. However, this deduction is limited to qualified individuals: active-duty members of the Armed Forces (and, new for 2026, certain members of the intelligence community) who are moving due to a permanent change of station. General taxpayers cannot claim moving expenses under the standard rate unless they meet these specific criteria.
2026 IRS Charitable Mileage Rate
If you volunteer for a qualified charitable organization and use your vehicle for related activities, such as delivering meals or transporting goods, the 2026 charitable mileage rate remains at 14 cents per mile—unchanged from 2025. Unlike the other rates, this one is set by federal statute and does not fluctuate annually based on cost studies.
How to Use the IRS Mileage Rates for Deductions?
Using the standard mileage rates is optional and simplifies tax filing by avoiding the need to itemize every expense. To qualify:
- For owned vehicles used in business, you must elect the standard rate in the first year the vehicle is placed in service. In subsequent years, you can switch to actual expenses if beneficial.
- For leased vehicles, if you choose the standard rate, you must stick with it for the entire lease term, including renewals.
Taxpayers always have the option to deduct actual vehicle expenses instead, which include gas, oil, repairs, insurance, depreciation, and more. This method requires meticulous record-keeping but may yield higher deductions if your costs exceed the standard rate. Consult a tax professional to determine the best approach for your situation.
Additionally, the IRS provides special rules in Notice 2026-10, including maximum vehicle costs for certain reimbursement plans and fair market value limits for employer-provided cars.
Why Do IRS Mileage Rates Change Annually?
The business rate is derived from an annual study of both fixed (e.g., depreciation, insurance) and variable (e.g., fuel, maintenance) costs of operating a vehicle. Medical and moving rates consider only variable costs, while the charitable rate is fixed by law. These updates ensure the rates remain relevant amid fluctuating economic factors like inflation and energy prices.
Final Thoughts on the 2026 IRS Mileage Rate
The 2026 IRS mileage rates offer a straightforward option for deducting vehicle-related expenses, with a notable increase in the business rate to 72.5 cents per mile. While medical and moving rates saw a slight decrease, the charitable rate holds steady. Staying informed about these changes can help you plan your taxes effectively and avoid surprises come filing time. For the most accurate advice, refer to official IRS resources or a qualified tax advisor.