IRS releases 2026 standard mileage rates

Each year, the Internal Revenue Service (IRS) publishes updated mileage rates that taxpayers use to calculate deductible vehicle expenses. These rates impact millions of business owners, self-employed individuals and employees who use personal vehicles for work-related purposes.

The IRS has released the 2026 standard mileage rates under Notice 2026-10, outlined below: 

• Business mileage rate: 72.5 cents per mile (70 cents per mile in 2025)
• Medical and moving mileage rate: 22 cents per mile (21 cents per mile in 2025)
• Charitable mileage rate: 14 cents per mile

The IRS establishes different mileage rates based on the purpose of the travel. Each category has distinct eligibility rules and tax treatment.

Business mileage rate (72.5 cents per mile) 

The business mileage rate applies when a vehicle is used for ordinary and necessary business purposes. Common examples include:

• Traveling between job sites or client locations
• Driving from a home office to meet customers or vendors
• Attending business meetings away from your regular workplace

Important exclusions:

• Commuting between your home and a regular work location, other than a qualifying home office, is not deductible.
• Personal errands combined with business travel must be prorated.

This rate is most commonly used by: 

• Self-employed individuals
• Independent contractors and freelancers
• Small business owners
• Employers reimbursing employees under an accountable plan

Medical and moving mileage rate (22 cents per mile)

The medical and moving mileage rate is more limited in scope. 

Medical mileage may be deducted for qualifying travel related to medical care such as:

• Trips to doctors’ offices or medical facilities
• Transportation required for medical treatment

Moving mileage generally applies only to:

• Active-duty members of the U.S. Armed Forces
• Moves that meet specific military-related criteria

This rate is typically significantly lower than the business mileage rate and is used only when the underlying expense qualifies under IRS rules. 

Charitable mileage rate (14 cents per mile)

The charitable mileage rate applies to unreimbursed vehicle use in the service of a qualified charitable organization. 

Examples include:

• Driving to volunteer events 
• Transporting supplies on behalf of a charity 

Unlike the other categories, the charitable mileage rate is set by statute and can only be changed by Congress. It’s not adjusted annually based on economic factors and, as a result, changes only occasionally. 

Standard mileage rate vs. actual expenses 

When deducting business vehicle use, taxpayers must choose between two methods:

• Standard mileage rate method
• Actual expense method

The choice you make can significantly affect your deduction, and in some cases, your ability to switch methods in future years. 

Standard mileage rate method

Under the standard mileage rate method, multiply qualifying business miles by the IRS-published rate (72.5 cents per mile for 2026). 

For purposes of basis reduction, a portion of the standard mileage rate is treated as depreciation. According to IRS Notice 2026-10, the portion of the business standard mileage rate treated as depreciation is 26 cents per mile for 2022, 28 cents per mile for 2023, 30 cents per mile for 2024, 33 cents per mile for 2025, and 35 cents per mile for 2026. When using the standard mileage rate, taxpayers must reduce the basis of the vehicle by the applicable per-mile depreciation amount for each year the standard mileage rate is used. 

What the standard rate covers:

• Fuel
• Maintenance and repairs 
• Insurance
• Depreciation
• Vehicle wear and tears

What it does not cover:

• Parking fees 
• Tolls
• Interest on a car loan (the business portion may be deductible for self-employed taxpayers, and the new vehicle interest deduction may apply separately under other provisions)
• Personal property taxes on a vehicle, which may be deductible separately, if otherwise allowed
• Fines and penalties, such as traffic or parking tickets, which are never deductible

This method is commonly used:

• When recordkeeping simplicity is a priority
• When vehicle operating costs are relatively low
• When a vehicle is fuel-efficient or inexpensive to maintain

Key limitation

If you use the standard mileage rate in the first year a vehicle is placed in service for business, you generally retain flexibility. However, if you use actual expenses first, switching to the standard mileage rate later may not be allowed.

Actual expense method

The actual expense method allows you to deduct the business portion of your vehicle’s operating costs.

Deductible expenses may include:

• Fuel
• Oil changes and repairs
• Insurance
• Registration and licensing fees
• Depreciation or lease payments 

To calculate the deduction, you must: 

1. Track total vehicle expenses for the year
2. Determine the percentage of business use versus personal use
3. Apply that percentage to total costs

This method is commonly used: 

• When a vehicle has high operating or maintenance costs 
• When business use represents a large percentage of total mileage
• When depreciation produces a larger deduction than the standard mileage rate

Trade-off: While this method can yield a larger deduction, it requires detailed documentation and consistent recordkeeping. 

Recordkeeping and documentation requirements

Regardless of the method chosen, the IRS requires contemporaneous records, meaning the mileage and expenses must be recorded at or near the time the travel occurs. Best practices include:

• Maintaining a mileage log with dates, destinations, business purposes and miles driven
• Retaining receipts for fuel, repairs, insurance and other vehicle expenses
• Separating personal and business use clearly

Failure to maintain adequate documentation can result in disallowed deductions during an audit.

Final thoughts

The decision between standard mileage and actual expenses is not merely a math exercise; it is a strategic tax choice that should align with your vehicle usage patterns and long-term planning goals.