IR-2025-128, Dec. 29, 2025
The Internal Revenue Service has released the optional standard mileage rates for 2026, reflecting updated cost data and inflation adjustments. The new rates apply beginning January 1, 2026, and are relevant for business, medical, charitable, and limited moving purposes.
Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
– Business use: 72.5 cents per mile, an increase of 2.5 cents from 2025.
– Medical purposes: 20.5 cents per mile, a decrease of 0.5 cents from 2025.
– Moving purposes: 20.5 cents per mile for certain active-duty members of the Armed Forces and, under recent legislation, certain members of the intelligence community; down 0.5 cents from 2025.
– Charitable purposes: 14 cents per mile, unchanged from 2025
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
Under the law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists, and eligible educators. Alternatively, eligible educators may claim an itemized deduction for certain unreimbursed employee travel expenses. In addition, only taxpayers who are members of the military on active duty or certain members of the intelligence community may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.
Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.
Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.
For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.
Notice-2026-10 contains the optional 2026 standard mileage rates, as well as the maximum automobile cost used to calculate mileage reimbursement allowances under a fixed-and variable rate plan. The notice also provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in 2026 for which employers may calculate mileage allowances using a cents-per-mile valuation rule or the fleet-average-valuation rule.
If you have questions about this issue or other policy matters, please contact NCACPA Coordinator of Advocacy & Outreach Will Edmondson.