IRS increases 2026 business mileage rate by 2.5 cents
Written by admin on December 30, 2025
The IRS announces an increase in the standard mileage rate for business use of vehicles
ByThe Associated Press
December 30, 2025, 12:39 PM
WASHINGTON — 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.
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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.
