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The IRS raised the standard business mileage rate to 76 cents a mile from 1 July 2026, up from the 72.5 cents that applied from 1 January. The medical and military moving rate rose at the same time, from 20.5 to 23.5 cents. The charitable rate is fixed by statute at 14 cents and did not change. A 2026 return therefore uses two different rates depending on when each mile was driven.
Reviewed by Dylan, finance analyst. Figures last checked against the source publications on 2026-09-28.
| Business use | 76¢ per mile | Up from 72.5¢ in the first half of the year |
|---|---|---|
| Medical purposes | 23.5¢ per mile | Up from 20.5¢ |
| Moving — military and intelligence community only | 23.5¢ per mile | Not available to other taxpayers |
| In service of charitable organizations | 14¢ per mile | Set by statute, so it does not move with inflation |
| 1 July – 31 December 2026 | 76¢ business | 14¢ charity · 23.5¢ medical and military moving |
|---|---|---|
| 1 January – 30 June 2026 | 72.5¢ business | 14¢ charity · 20.5¢ medical and military moving |
| 2025 | 70¢ business | 14¢ charity · 21¢ medical and military moving |
| 2024 | 67¢ business | 14¢ charity · 21¢ medical and military moving |
A mid-year change is unusual — the last one was in 2022, and before that 2011 — and it is the thing most likely to be got wrong on a 2026 return. The rate is not chosen by when the expense is claimed or reimbursed. It is set by when the mile was driven: 72.5 cents for travel up to 30 June, 76 cents from 1 July.
For anyone keeping a mileage log this means the log has to distinguish the two periods. A single annual total multiplied by one rate will be wrong in one direction or the other, and it is the kind of error that is visible on the face of the return.
The same split applies to mileage allowances paid to employees. The revised rate applies where both the payment and the travel it covers fall on or after 1 July.
The standard rate is a substitute for tracking what the vehicle actually costs. You can instead deduct actual expenses — fuel, insurance, repairs, depreciation — and for an expensive vehicle driven relatively little, that often comes to more.
The choice is not free to revisit. For a vehicle you own, the standard rate must be used in the first year it is available for business use if you want the option of using it in any later year; start with actual expenses and the standard rate is closed off for that vehicle. For a leased vehicle, whichever method you start with must be used for the whole lease, including renewals.
The rate is widely quoted and much less widely available. Employees cannot deduct unreimbursed business mileage as a miscellaneous itemised deduction — that deduction is suspended — so in practice the business rate is used by the self-employed, by businesses reimbursing staff, and by a short list of exceptions including certain reserve-component members of the armed forces, certain state and local officials, certain performing artists and eligible educators.
The moving rate is narrower still: only active-duty members of the armed forces relocating under orders, and now certain members of the intelligence community, may deduct moving mileage at all.
The business rate comes from an annual study of both the fixed and the variable costs of running a car — depreciation, insurance and registration as well as fuel and maintenance. The medical and moving rate uses only the variable costs, which is why it is roughly a third of the business figure.
The charitable rate is not studied at all. It is written into the statute at 14 cents and has stayed there for decades, which is why it now sits well below what driving costs.
All three apply equally to fully electric and hybrid vehicles as to petrol and diesel ones.
The business rate is 76 cents a mile from 1 July 2026, up from 72.5 cents between 1 January and 30 June. The medical and military moving rate is 23.5 cents from 1 July, up from 20.5, and the charitable rate is 14 cents all year.
The IRS raised the rate mid-year. The date each mile was driven decides the rate: 72.5 cents up to 30 June and 76 cents from 1 July, so a mileage log has to separate the two periods.
14 cents a mile. It is set by statute rather than by the IRS's annual cost study, so it does not change with inflation.
Not unreimbursed business mileage, because that itemised deduction is suspended. The business rate is used mainly by the self-employed, by businesses reimbursing staff, and by a short list of exceptions such as certain reservists and eligible educators.
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Figures sourced from IRS — Standard mileage rates (all years), IRS — Notice 2026-10, the January 2026 rates, IRS — Internal Revenue Bulletin 2026-29, the revised rates.
Figures on this page apply to the years stated beside them and were last checked against the source publications on 2026-09-28 by Dylan, finance analyst. This page is general information, not financial, tax or legal advice.