2026 IRS Standard Mileage Rates: Business Up, Medical & Moving Down

The Internal Revenue Service has announced the 2026 IRS standard mileage rates used to calculate deductible vehicle expenses for business, medical, moving, and charitable purposes. These rates help taxpayers estimate driving-related deductions in a simple and consistent way.

Business Mileage Rate Hits a New High

For tax year 2026, the standard mileage rate for business use increased to 72.5 cents per mile, marking the highest rate ever set by the IRS. This increase reflects higher costs associated with owning and operating a vehicle, including fuel, maintenance, insurance, and depreciation. For business owners and self-employed individuals, this change may result in larger allowable deductions.

Medical and Moving Mileage Rates Decline

While business rates rose, the mileage rate for medical and qualifying moving expenses decreased slightly to 20.5 cents per mile in 2026. These rates apply to eligible medical travel and certain military-related relocations. Taxpayers should carefully track qualifying trips to ensure accurate deductions.

Charitable Mileage Rate Remains the Same

The standard mileage rate for charitable driving remains unchanged at 14 cents per mile. Although this rate is lower than business or medical rates, it continues to provide a deduction option for individuals who use personal vehicles while volunteering for qualified charitable organizations.

How to Use Standard Mileage Rates

To calculate a deduction, taxpayers multiply the applicable mileage rate by the number of qualifying miles driven. Maintaining detailed mileage records—including dates, purposes, and total miles—is essential for supporting deductions. Some taxpayers may choose the actual expense method instead, depending on which provides a greater tax benefit.

Who Benefits Most From Mileage Deductions

Self-employed individuals, freelancers, and small business owners often benefit the most from standard mileage rates because of their simplicity and consistency. Employees generally cannot deduct unreimbursed business mileage under current tax law unless they meet specific exceptions.

Conclusion

The 2026 IRS standard mileage rates bring meaningful changes for taxpayers who drive for business, medical, or charitable purposes. Understanding the updated rates and keeping accurate records can help maximize deductions and support better tax planning in the year ahead.