The IRS has issued new optional standard mileage rates to calculate operating costs for business vehicles.
The revised rates, which became effective January 1, 2026, are as follows:
- 72.5 cents per mile for business travel driven (up 2.5 cents from 2025’s amount);
- 20.5 cents per mile driven for medical or moving purposes for certain military personnel (down one-half cent from 2025’s rate);
- 14 cents per mile driven in service of charitable organizations (remains the same).
The standard rate for business use is determined through an annual study of fixed and variable costs of vehicle operation, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is established on variable costs alone.
The mileage rate for charitable purposes is set by statue.
If you have questions regarding the implications of vehicle expenses or mileage rates, contact us as [email protected].
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