The Internal Revenue Service (IRS) has announced the 2026 standard mileage rates for taxpayers who use their vehicles for business, medical, charitable, or qualified moving purposes.

Effective January 1, 2026, the business standard mileage rate will increase from 70 cents to 72.5 cents per mile. The medical mileage rate was decreased from 21 cents to 20.5 cents per mile, while the charitable mileage rate will remain unchanged at 14 cents per mile.

Additionally, following the passage of the One Big Beautiful Bill Act (OBBBA), certain active-duty members of the Armed Forces and members of the intelligence community may claim qualified moving expenses at a rate of 20.5 cents per mile.

The IRS continues to stress the importance of maintaining proper documentation and substantiation when claiming mileage deductions. These rates apply to all vehicle types, including gasoline, diesel, hybrid, and fully electric vehicles. Taxpayers may choose between the standard mileage rate and actual vehicle expenses, selecting the method that provides the greatest tax benefit.

There are several mobile applications available to assist with mileage tracking, as well as Excel-based spreadsheets for those who prefer a manual approach. As we begin 2026, establishing consistent mileage-tracking habits can help ensure that every eligible deduction is accurately captured and maximized.

( Written with information compiled by the IRS )