IRS increases 2026 business mileage rate by 2.5 cents

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WASHINGTON (AP) — The standard mileage rate for the business use of a car, truck, van or other vehicle will increase by 2.5 cents in 2026.

The IRS announced Monday that beginning Jan. 1, the standard mileage rate for a qualifying vehicle will be 72.5 cents per mile, up 2.5 cents from 2025.

The rate will be 20.5 cents per mile driven for medical purposes, down a half cent from 2025 and will be 20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces and certain members of the intelligence community, which is reduced by a half cent from last year.

The change, meant to reflect updated cost data and annual inflation adjustments, applies to fully-electric and hybrid automobiles, and gas and diesel-powered vehicles.

Use of the standard mileage rates is optional. People who use a their car for work may instead choose to calculate the actual costs of using their vehicle.