IRS Announces 2026 Standard Mileage Rates

The Internal Revenue Service (IRS) has issued Notice 2026-10, announcing the optional standard mileage rates for 2026. Taxpayers can use these rates to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

2026 Standard Mileage Rates Overview

Effective January 1, 2026, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

• 72.5 cents per mile driven for business use.
• 20.5 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces.
• 14 cents per mile driven in service of charitable organizations.

The business mileage rate has increased, reflecting the changing costs of vehicle ownership and operation. The rate for charitable organizations remains set by statute at 14 cents per mile.

Important Considerations

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under current tax law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

Depreciation and Vehicle Cost

For 2026, the portion of the business standard mileage rate treated as depreciation is 35 cents per mile.

Additionally, the maximum standard automobile cost may not exceed $61,700 for automobiles (including trucks and vans) for purposes of computing the allowance under a fixed and variable rate (FAVR) plan.

Official IRS Notice

For complete details, you can read the official IRS text in Notice 2026-10.

Track Your Miles Automatically

To take full advantage of these deductions, maintaining accurate and contemporaneous logs is essential. The Standard Mileage App simplifies this process by automatically tracking your trips using GPS, classifying them, and generating IRS-compliant reports.

Disclaimer: This article provides a summary of the IRS rates and is for informational purposes only. It does not constitute tax advice. Please consult a qualified tax professional regarding your specific tax situation.