The IRS issued the 2026 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. As of Jan. 1, 2026, the rates when using a car, van, pickup or panel truck are:

• Business purposes: 72.5 cents per mile, up 2.5 cents from 2025.
• Medical purposes: 20.5 cents per mile, down a half cent from 2025.
• Moving purposes for certain active-duty Armed Forces members: 20.5 cents per mile, down a half cent from last year. This rate now also applies to certain members of the intelligence community.
• Service of charitable organizations: 14 cents per mile, no change from 2025.

These rates are applicable to electric and hybrid-electric vehicles, as well as gasoline and diesel-powered ones. The standard mileage rate for business use is determined through an annual analysis of fixed and variable operating costs, while the rate for medical and moving purposes is based on variable costs.

Under current law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists and eligible educators. 

Taxpayers have the flexibility to choose between using these standard rates or calculating the actual costs of vehicle usage. If the standard mileage rate is chosen, it must be applied in the first year the vehicle is used for business purposes. Subsequently, taxpayers can decide whether to continue using the standard rate or switch to actual expenses. For leased vehicles, if the standard rate is chosen, it must be used for the entire lease duration, including renewals.

If you have questions about the deductibility of your vehicle’s mileage in 2026, Doeren Mayhew’s business tax pros are here to show you the way.