US EditionIRS Increases 2026 Business Mileage Rate by 2.5 Cents
The IRS raised the business mileage rate by 2.5 cents to 5 cents while lowering medical and moving rates to 20.5 cents based on updated cost and inflation data.
- Beginning next week, the IRS set the 2026 business mileage rate at 5 cents per mile, up 2.5 cents from 2025, as announced in a Dec. 29 statement.
- Based on updated cost data and inflation adjustments, the Internal Revenue Service determined rates using its annual study of fixed and variable vehicle operating costs.
- For medical and eligible moving travel, the IRS set the rate at 20.5 cents per mile, reduced by a half cent from last year, and the updated rates apply to both gas and electric vehicles used by companies using cars for business purposes.
- Taxpayers can choose between the IRS standard mileage rate or actual expense method, while companies may deduct some vehicle operating costs within limits when filing taxes.
- Use of the IRS mileage rates is optional, and the announcement drew national coverage including reporting by Naveen Athrappully, The Epoch Times reporter, in Washington, D.C.
25 Articles
25 Articles
Associated Press News
IRS increases 2026 business mileage rate by 2.5 cents
The IRS announces an increase in the standard mileage rate for business use of vehicles. Starting January 1, 2026, the rate will be 72.5 cents per mile, up 2.5 cents from 2025.
IRS Raises Standard Mileage Rate By 2.5 Cents Per Mile
The IRS has set the standard mileage rate for vehicles used for business purposes for 2026, raising it by 2.5 cents from 2025, the agency said in a Dec. 29 statement. If a company uses a car for business purposes, some of the operating costs, subject to certain limits, can be deducted when calculating taxes. The deductible amount can be calculated by the standard mileage rate or the actual expense method, with the former being determined by the …
What Is Mileage Reimbursement? 2026 Rates and More
As a business owner, running errands is inevitable. But sometimes, you are too busy to make the run yourself. You might send an employee to pick up something or handle a task for you. If you find yourself counting on employees to use their personal cars for business, consider offering mileage reimbursement. So, what is […]
The Internal Revenue Service announced today that the standard optional mileage rate for commercial use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical purposes will also increase. Standard optional mileage rates are used to calculate deductible costs for operating vehicles for business, charitable, and medical purposes. Additionally, the standard optional mileage rate can be used to calcul…
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