If you drive for work, this is one of those “small update, real money” announcements.
The IRS has set the 2026 standard mileage rate for business use at 72.5 cents per mile, which is up 2.5 cents from 2025. The new rate applies starting January 1, 2026.
This matters for business owners, self-employed taxpayers, and anyone who uses a vehicle as part of doing their job (and wants to claim the right deduction or set up reimbursements correctly).
The 2026 mileage rates at a glance
Beginning January 1, 2026, the IRS standard mileage rates are:
- 72.5 cents per mile driven for business use (up 2.5 cents)
- 20.5 cents per mile driven for medical purposes (down 0.5 cents)
- 20.5 cents per mile driven for moving purposes for certain active-duty Armed Forces members (and now certain members of the intelligence community), also down 0.5 cents
- 14 cents per mile driven in service of charitable organizations (unchanged)
The IRS also notes these rates apply to gas, diesel, hybrid, and fully electric vehicles.
What the standard mileage rate actually does (and what it does not)
The standard mileage rate is an optional way to calculate the deductible cost of operating a vehicle for business, rather than tracking every single actual expense.
The important thing is using the method correctly, and keeping the right mileage records so the deduction holds up if the IRS ever asks questions.
If you want the IRS overview of business vehicle use rules and the two common methods (standard mileage vs actual expenses), this is the link included in the IRS release: Topic no. 510, Business use of car.
A couple of rules that trip people up
The IRS highlights a few “method” rules worth knowing:
- If you own the vehicle and want to use the standard mileage rate, you generally need to choose it in the first year the car is available for business use.
- If you lease the vehicle and choose the standard mileage rate, you generally must use that method for the entire lease period, including renewals.
This is exactly the kind of detail that can create a messy correction later if it’s handled casually.
Want the official IRS notice?
The IRS also links to the official notice that contains the 2026 rates and related limits: Notice 2026-10 (PDF).
How we help
If you drive for business, the question is usually not “What is the rate?” It is “How do I claim this correctly for my situation?”
We help clients with things like:
- choosing the right method (standard mileage vs actual expenses)
- setting up clean mileage tracking habits
- making sure deductions or reimbursements are documented properly
If you want to make sure you’re handling the 2026 standard mileage rate the right way, reach out here: Contact Torkelson & Associates CPAs.