The IRS mileage rate 2026 is officially here—and it matters more than ever for taxpayers, small business owners, and employers. Each year, millions of Americans search this exact phrase to find out how much they can deduct or be reimbursed for driving. With higher operating costs and fuel prices still top of mind, the standard mileage rate 2026 plays a key role in tax planning.
Whether you’re self-employed, reimbursing employees, volunteering, or driving to medical appointments, understanding the IRS mileage reimbursement 2026 rules can help you avoid mistakes and maximize your deductions.
Below is a fully updated guide with current IRS mileage rates, detailed explanations, examples, and a simple calculator.
What Is the IRS Mileage Rate?
The IRS mileage rate is a per-mile amount set annually by the Internal Revenue Service. It allows taxpayers to deduct vehicle costs without tracking every individual expense like gas, repairs, insurance, or depreciation.
Instead, the IRS assumes an average cost per mile and lets you multiply that number by your qualifying miles driven. This approach simplifies recordkeeping and is especially popular with small businesses and independent contractors.
Official IRS Mileage Rates for 2026 (Updated)
The IRS has officially announced the standard mileage rate for 2026, effective January 1, 2026.
2026 IRS Mileage Rates
Business mileage: 72.5 cents per mile
Medical & moving mileage: 20.5 cents per mile
Charitable mileage: 14 cents per mile
The business rate increased significantly compared to 2025, reaching a record high, reflecting higher vehicle ownership and operating costs. Medical and moving mileage declined slightly, while the charitable rate remains unchanged due to federal statute.
IRS Mileage Rate 2026: Business Use Explained
The business mileage rate is the most widely used IRS rate and applies to miles driven for work-related purposes, including:
Traveling to client or customer meetings
Driving between job sites or temporary work locations
Sales calls, consulting work, or service appointments
Self-employed and contractor travel
It’s important to note that commuting from home to your regular office does not qualify. Only mileage that is directly related to business activities can be deducted or reimbursed using the IRS mileage reimbursement 2026 rate.
For employers, reimbursing employees at or below 72.5¢ per mile remains tax-free under federal rules.
Medical Mileage Rate 2026: Who Qualifies
The medical mileage rate 2026 applies to miles driven for necessary medical care. This includes:
Doctor and specialist appointments
Hospital visits and treatments
Therapy or rehabilitation sessions
Trips to obtain prescribed medications
Medical mileage is claimed as part of itemized deductions on Schedule A and is subject to adjusted gross income (AGI) thresholds. While the rate is lower than the business rate, it can still add up significantly for individuals with frequent medical travel.
Charity Mileage Rate 2026: Volunteer Driving
The charitable mileage rate remains at 14 cents per mile for 2026. This rate applies only when driving for a qualified tax-exempt organization, such as:
Volunteer work
Transporting supplies
Attending charity-related meetings
Unlike business mileage, the charity rate is set by Congress, not inflation, which is why it rarely changes.
IRS Mileage Rate 2026 Calculator (Simple Formula)
Calculating your deduction is straightforward once you know your mileage total.
Mileage Deduction Formula
Miles Driven × IRS Mileage Rate = Deduction or Reimbursement
Examples Using 2026 Rates
1,000 business miles: 1,000 × $0.725 = $725
5,000 business miles: 5,000 × $0.725 = $3,625
10,000 business miles: 10,000 × $0.725 = $7,250
Medical example:
3,000 medical miles × $0.205 = $615
Charity example:
800 volunteer miles × $0.14 = $112
Mileage Rate vs. Actual Expenses: Which Is Better in 2026?
Taxpayers generally must choose between:
Standard mileage rate, or
Actual expense method (fuel, maintenance, insurance, depreciation)
The standard mileage rate 2026 is simpler and often beneficial for fuel-efficient vehicles or high-mileage drivers. Actual expenses may work better for newer or more expensive vehicles—but once you choose a method for a vehicle, IRS rules limit switching later.
Mileage Tracking Rules You Must Follow
To claim mileage deductions or reimbursements, the IRS requires contemporaneous records, including:
Date of each trip
Purpose of the trip
Starting and ending mileage
Destination
Mileage tracking apps, spreadsheets, or handwritten logs are all acceptable, as long as records are accurate and complete.
Key Takeaways
The IRS mileage rate 2026 provides meaningful tax benefits when used correctly. With the business rate at 72.5¢ per mile, drivers can see substantial deductions or reimbursements over the year. Medical and charitable mileage may seem smaller, but consistent tracking can still reduce taxable income.
Understanding the rules now—and tracking miles throughout 2026—can prevent missed deductions later.
FAQ: IRS Mileage Rate 2026
When does the 2026 mileage rates take effect?
January 1, 2026.
Can employees deduct mileage on their own taxes?
Generally no, but employers can reimburse mileage tax-free using IRS rates.
Do I need receipts for gas?
Not when using the standard mileage rate, but mileage logs are mandatory.
Can I deduct both mileage and gas?
No. You must choose either the mileage rate or actual expenses for a vehicle.