---
title: IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents
description: The IRS has officially released the standard mileage rates for 2026. While business users will see a slight bump in their per-mile deduction, those claiming medical or moving expenses will see a minor decreas
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 Feb 20, 2026 11:08:12 AM

# IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

[Osheen Haghnazarian](https://osheenstaxes.com/blog/author/osheen-haghnazarian)

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he IRS has officially released the standard mileage rates for 2026. While business users will see a slight bump in their per-mile deduction, those claiming medical or moving expenses will see a minor decrease.

Here is the breakdown of what you need to know for the upcoming year.

---

## **2026 Standard Mileage Rates**

Effective **January 1, 2026**, the rates for cars, vans, pickups, and panel trucks (including electric, hybrid, and gas-powered vehicles) are:

| **Purpose** | **2026 Rate (per mile)** | **Change from 2025** |
| --- | --- | --- |
| **Business** | **72.5 cents** | + 2.5 cents |
| **Medical** | **20.5 cents** | - 0.5 cents |
| **Moving**\* | **20.5 cents** | - 0.5 cents |
| **Charity** | **14 cents** | No change |

## **Key Takeaways & Eligibility**

- **Intelligence Community Update:** Under the "One, Big, Beautiful Bill," certain members of the intelligence community are now eligible for the moving expense deduction, joining active-duty military.
- **How Rates are Set:** The business rate is calculated based on both **fixed and variable costs** (like insurance and depreciation), while medical and moving rates focus only on **variable costs** (like gas and oil). The charitable rate remains frozen by statute.
- **The "First Year" Rule:** If you want to use the standard mileage rate for a vehicle you **own**, you must choose it in the first year the car is used for business. In future years, you can switch between standard and actual costs.
- **Leased Vehicles:** If you choose the standard mileage rate for a **leased** vehicle, you must stick with it for the duration of the lease.
- **Itemized Deductions:** Most employees cannot claim a deduction for unreimbursed travel expenses. However, exceptions remain for educators, performing artists, certain government officials, and military reservists.

---

## **The Bottom Line**

While using these rates is optional—you can always choose to track and deduct **actual expenses** instead—they offer a simplified way to account for vehicle costs without saving every single gas receipt.

[#2026 Standard Mileage Rates](https://osheenstaxes.com/blog/tag/2026-standard-mileage-rates)

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