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IRS Sets 2026 Mileage Rates, Raising Business Allowance and Trimming Medical/Moving

Notice 2026-10 details the cost-based update with employer reimbursement guidance for 2026.

Overview

  • Effective Jan. 1, 2026, the standard mileage rates are 72.5¢ per mile for business, 20.5¢ for medical and moving, and 14¢ for charitable service.
  • Compared with 2025, the business rate rises by 2.5¢ while the medical and moving rates each fall by 0.5¢, and the charitable rate remains fixed by statute.
  • The business rate reflects both fixed and variable vehicle costs, whereas the medical and moving rates are based only on variable costs.
  • The rates apply to fully electric, hybrid, gasoline, and diesel vehicles.
  • Employers commonly use these benchmarks for reimbursements, 2025 rates still apply to expenses incurred before Jan. 1, 2026, and payments above the IRS rate are generally taxable to employees.