The IRS Updates Standard Mileage Reimbursement Rates For 2026

The Internal Revenue Service (IRS) has announced the 2026 optional standard mileage rates for calculating deductible expenses related to operating an automobile for business, charitable, and medical reasons. Deductible expenses are also applicable for moving expenses (specifically for certain active-duty members of the Armed Forces and the intelligence community). The standard mileage rate for business use is determined through an annual study of both fixed and variable costs associated with operating a vehicle, while the rates for medical and moving purposes are based solely on variable costs.

Effective January 1, 2026, the IRS has increased the optional standard mileage rate by 2.5 cents from the 2025 rate to 72.5 cents per mile driven. The rate for medical or moving purposes has decreased by 0.5 cents to 20.5 cents per mile. The rate for service on behalf of charitable organizations is 14 cents, which is set by statute and remains unchanged from 2025. These rates apply to all vehicle types, including electric, hybrid, gasoline, and diesel-powered automobiles.