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IRS Sets 2026 Mileage Rates: Business Rises to 72.5¢, Medical/Moving at 20.5¢

The update reflects the IRS’s annual cost study, applying across fuel types.

Overview

  • The new rates apply to miles incurred or reimbursed on or after Jan. 1, 2026, with earlier expenses remaining under 2025 rates.
  • Business mileage increases by 2.5 cents to 72.5¢ per mile, while medical and qualifying moving drop to 20.5¢; the charitable rate stays 14¢.
  • Moving mileage eligibility is limited to certain active-duty members of the Armed Forces and specified intelligence community members.
  • The rates cover gasoline, diesel, hybrid, and fully electric vehicles.
  • Using the standard rate is optional in favor of actual-expense deductions, and leased vehicles must keep the chosen method for the entire lease term.