Staying on top of IRS changes is essential for small business owners, freelancers, and healthcare workers looking to maximize their tax deductions. On December 29, 2025, the Internal Revenue Service released the official 2026 standard mileage rates, and there are some notable shifts you need to prepare for.

Starting January 1, 2026, the rate for business travel is seeing a significant boost, while rates for medical and moving purposes are dipping slightly.

Here is the breakdown of the 2026 IRS mileage rates and how they impact your bottom line.

The 2026 IRS Mileage Rate Breakdown

The IRS adjusts these rates annually based on an analysis of the fixed and variable costs of operating an automobile, including gas, insurance, and depreciation.

• Business Mileage: 72.5 cents per mile (Up 2.5 cents from 2025)

• Medical Purposes: 20.5 cents per mile (Down 0.5 cents from 2025)

• Moving Purposes: 20.5 cents per mile (Down 0.5 cents from 2025)

• Charitable Service: 14 cents per mile (Unchanged)

What Does the 2.5 Cent Increase Mean for You?

The jump to 72.5 cents per mile for business use is a welcome change for anyone who uses their personal vehicle for work. Whether you are a real estate agent driving to showings, a consultant visiting clients, or a delivery driver, this increase allows you to deduct more from your taxable income, potentially saving you hundreds or even thousands of dollars depending on your annual mileage.

Key takeaway: This rate applies to all fuel types—including electric vehicles (EVs), hybrids, diesel, and gasoline-powered cars, vans, pickups, and panel trucks.

New Eligibility for Moving Deductions

While moving expense deductions are generally limited to active-duty members of the Armed Forces relocating under orders, there is a new update for 2026. Under the “One, Big, Beautiful Bill,” certain members of the intelligence community are now also eligible to use the moving mileage rate of 20.5 cents per mile when relocating for work.

Standard Mileage Rate vs. Actual Expenses

Remember, using the IRS standard mileage rate is optional. You have two choices when it comes to vehicle deductions:

1. The Standard Mileage Rate: Simplified record-keeping (just track your miles).

2. Actual Expenses: Tracking every receipt for gas, oil changes, tires, insurance, and repairs.

Pro-Tip: If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for business use. For leased vehicles, if you choose the standard mileage rate, you must stick with it for the entire duration of the lease.

Tips for Tracking Your Mileage in 2026

To satisfy IRS requirements and protect yourself in the event of an audit, you must maintain an accurate log. Your log should include:

• The date of the trip

• The total mileage

• The destination

• The business purpose of the trip

Using a mileage tracking app or a dedicated notebook in your glovebox is the best way to ensure you don’t leave money on the table when tax season 2027 rolls around.

Final Thoughts

With the business rate climbing to an all-time high of 72.5 cents, 2026 is the year to get serious about your mileage tracking. For more details, you can refer to the official IRS Notice 2026-10.

Always consult with a qualified tax professional regarding your specific situation.