The IRS announced that the standard mileage rate for business use of a car, truck, van, or other vehicle will increase by 2.5 cents in 2026, to 72.5 cents per mile.
The new rate, effective January 1, 2026, applies to fully electric, hybrid, gas, and diesel-powered vehicles.
The big picture: The mileage rate for medical or moving purposes (for certain active-duty Armed Forces and intelligence community members) will be 20.5 cents per mile, a decrease of 0.5 cents from 2025.
- Use of the standard mileage rate is optional; individuals may instead choose to calculate actual vehicle expenses for reimbursement.
- The changes are designed to reflect annual inflation adjustments and updated cost data.
