IRS increases business mileage rate
WASHINGTON (AP) — 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. The rate for medical and certain moving purposes will be 20.5 cents per mile, down half a cent from 2025. This change reflects updated cost data and inflation adjustments. It applies to fully-electric, hybrid, gas, and diesel vehicles. Using the standard mileage rates is optional. People can choose to calculate the actual costs of using their vehicle instead.