The IRS has increased the business standard mileage rates for 2026 to 72.5 cents per mile, while the medical mileage rate will decrease by half a cent to 20.5 cents per mile. The updated rates, which apply to electric, hybrid, gasoline, and diesel-powered vehicles, are effective Jan. 1, 2026. Additional details include that the mileage rate for charitable activities remains unchanged, and taxpayers may opt to use the standard mileage rates or calculate actual vehicle expenses for tax deductions. [IR-2025-128 (December 29, 2025)]
This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.
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