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IRS Sets Standard Mileage Rates for Vehicle Use in 2026 by Steven Rubin, CPA

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Posted on March 26, 2026 by Steven Rubin

The IRS has set the 2026 optional standard mileage rates taxpayers may use to determine the deductible costs of operating a motor vehicle for business, medical, charitable and moving purposes.

Effective Jan.1, 2026, the rates for operating a car, van, pick-up or panel truck powered by gasoline, diesel or electricity (including hybrid vehicles) are:

Business Use

Individual taxpayers, including business owners, independent contractors and gig-economy freelancers, may use the optional standard mileage rate for vehicles they own or lease, or they may instead track and substantiate the actual costs they incur when using their automobiles for business and other covered purposes.

The method taxpayers choose for the first year of using an automobile for business purposes affects their options in subsequent years. For example, taxpayers who own their vehicles must use the standard mileage rate in the first year the vehicles are available for business use. However, they may choose to use the standard mileage rate or actual expenses in future years. By contrast, taxpayers who lease their vehicles must use the standard mileage rate for the entire lease term (including renewals).

Businesses may also rely on the optional standard mileage rates to reimburse employees for the ordinary and necessary costs they incur when using their personal vehicles for business purposes. Under these circumstances, companies may deduct employee reimbursements as business expenses, while employees may exclude those reimbursed amounts from their taxable income. However, employees who do not receive mileage reimbursement from their employers may not claim miscellaneous itemized deductions for travel expenses unless they are self-employed, eligible educators, performing artists, certain government officials or members of the Armed Forces.

Medical Use

Generally, taxpayers may deduct medical expenses only when the total amount exceeds 7.5 percent of their adjusted gross income—a significant threshold for high-income earners. When taxpayers meet this ceiling, they may be able to claim deductions for travel to scheduled doctor appointments at a rate of 20.5 cents per mile in 2026.

Charitable Use

The charitable rate of 14 cents per mile in 2026 applies to mileage taxpayers incur while traveling for volunteer work on behalf of a qualifying charitable organization.

Moving Expenses

In 2026, the only taxpayers who may claim federal deductions for moving expenses, including mileage to a new home, are active-duty military personnel and members of the CIA, FBI, NSA, or other intelligence organizations under orders to a permanent change of station.

About the Author: Steven Rubin, CPA, is a director of Tax, Business Services with Baker Tilly x Berkowitz Pollack Brant, where he provides tax consulting and compliance services to entrepreneurs, high-net-worth families and closely held businesses in a wide range of industries. He can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or info@bpbcpa.com.