Dec. 29, 2025, 2:40 p.m. ET
- Many drivers do not claim the mileage deduction on their federal income tax returns. Companies that reimburse their employees for mileage driven for business often follow the IRS mileage r
- Most taxpayers cannot deduct mileage for their regular moving expenses.
- A rate of 20.5 cents per mile will apply in 2026 for moving purposes for qualified active-duty members of the Armed Forces, a slight decline of 0.5 cents from the 2025 rate.
Drivers who qualify for business reasons will see a few more pennies added onto the IRS standard mileage rate in 2026. But some others will actually be surprised to see a slight drop in their standard mileage rate next year.
The Internal Revenue Service announced that the 2026 standard mileage rate will go up by 2.5 cents per mile to 72.5 cents for the optional mileage rate for automobiles driven for business.
Not all drivers will be pleased, though, as the mileage rate for use of a car, van, pickup or panel truck for medical reasons will decline by 0.5 cents, according to an IRS release issued Monday, Dec. 29.
The standard mileage rate for medical purposes drops to 20.5 cents per mile in 2026.
A mileage rate of 20.5 cents per mile will apply in 2026 for moving purposes for qualified active-duty members of the Armed Forces, which is also a slight decline of 0.5 cents from the 2025 rate. What’s new: This rate now also applies to certain members of the intelligence community based on changes in the legislation popularly known as the One, Big, Beautiful Bill, which was signed into law by President Donald Trump on July 4, 2025, according to the IRS.
The changes in the 2026 mileage rates for both medical reasons and military moves reflect how such rates are calculated, as well as updated cost data and annual inflation adjustments.
The mileage rate used when driving in service of charitable organizations will remain at 14 cents in 2026. This rate is set by statute and will be unchanged.
The rates apply to fully electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
These newly announced rates would apply to 2026 tax returns that would be filed in 2027.
While the mileage rate for charitable use is set by statute, the IRS notes, the 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 only on the variable costs from the annual study.
To be sure, many drivers do not claim the mileage deduction on their federal income tax returns. Companies that reimburse their employees for mileage driven for business often follow the IRS mileage rate, but the employee doesn’t claim a deduction if they’re reimbursed.
Self-employed individuals can claim business mileage on a tax return. Those filing 2025 returns in the months ahead will use the 2025 standard mileage rate for those returns, not the new IRS mileage rate for 2026.
Use of the standard mileage rates is optional, the IRS notes. Taxpayers may instead choose to calculate the actual costs of using their vehicle if they follow the appropriate steps. You can only use one method — the standard mileage rate or the business portion of actual expenses — for the same vehicle.
Getting a tax break for claiming mileage isn’t as simple as it used to be. Most taxpayers, for example, cannot deduct mileage for their regular moving expenses.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.