Taxpayers who claim the standard mileage rate deduction for the miles they log for business purposes will be able to write off 72.5 cents per mile in 2026, the IRS has announced.
That is up 2.5 cents — or about 3.5% — from the rate that was in effect for 2025.
Drivers who take the standard mileage rate deduction for other purposes will not see an increase for 2026. In fact, some will see a slight decrease. These new rates are:
- 20.5 cents per mile driven for medical purposes — down from 21 cents. (This deduction is available only to people who itemize their tax deductions, rather than claiming the standard deduction, and whose deductible medical and dental expenses exceed 7.5% of their adjusted gross income.)
- 20.5 cents per mile driven for moving purposes — down from 21 cents. (This deduction is available only to active-duty military members.)
- 14 cents per mile driven in service of a charitable organization — the same as it was for 2025
The IRS notes that the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile, whereas the rate for medical and moving purposes is based only on variable costs.
The rate for miles driven in service of a charity is set by law. So it can only change if Congress passes legislation changing the rate and the president signs it into law. Consequently, the rate has been the same since 1998.
Only those who qualify for any standard mileage rate deduction can take it.
Taking this deduction is just one method of getting a tax break for qualifying expenses. Eligible taxpayers can choose instead to calculate the actual costs of using their vehicle and deduct that amount, as we detail in “6 Things Every Self-Employed and Gig Worker Ought to Know About Taxes.”
Add a Comment