IRS Announces 2026 Standard Mileage Rates: Business at 72.5¢

(WASHINGTON, D.C.) — the irs raised the standard mileage rate for business use of automobiles to 72.5 cents per mile starting January 1, 2026, giving self-employed workers and other eligible taxpayers a larger per‑mile write-off for tax year 2026 (returns filed in 2027).

The IRS updates standard mileage rates each year. These optional rates let you compute vehicle deductions without tracking every gas receipt and repair invoice.

many immigrants and visa holders rely on the standard rate because it is simple and widely accepted by employers and tax preparers.

for 2026, the changes are mixed. The business rate increased, while the medical and moving rates decreased slightly. The charitable rate stayed flat, because Congress sets it by statute.

the irs announced the 2026 rates in Notice 2026-10, which also covers employer valuation rules and reimbursement limits.

📅 Deadline Alert: For tax year 2026, most individuals file Form 1040 by April 15, 2027. An extension typically moves the filing deadline to October 15, 2027, but does not delay tax due. (See IRS instructions for Form 4868 at irs.gov/forms-pubs.)

Overview: 2026 standard mileage rate update

The IRS standard mileage rate is a per‑mile amount you multiply by qualifying miles. It is used in four categories:

• Business (work driving for your trade or business)
• Medical (certain trips primarily for medical care)
• Moving (very limited eligibility)
• Charitable (volunteering for qualified charities)

For tax year 2026, the business rate rose to 72.5 cents per mile. Medical and moving dipped to 20.5 cents per mile. Charitable mileage remained 14 cents per mile.

Those rates apply to a car, van, pickup, or panel truck. They apply regardless of powertrain. That includes EVs, hybrids, gasoline, and diesel vehicles.

Rates by use in 2026 (per mile, car/van/pickup/panel truck)

The category matters more than the vehicle type. Each mileage category has its own definition and tax rule.

Business mileage (most common)

Business mileage generally means driving that is ordinary and necessary for your work. That includes trips from your office to a client, job site, or temporary work location.

It can also include errands for your business. Commuting is not business mileage. Driving from home to your regular workplace is commuting, even if you discuss work on the way. This is a top audit issue.

Example: You are on an H-1B and do freelance consulting as a side business. You drive 2,000 miles in 2026 to client sites. If you qualify to use the standard rate, your mileage deduction would be 2,000 × $0.725 = $1,450.

Medical mileage

Medical mileage is tied to itemized medical expenses on Schedule A. It generally covers travel that is primarily for medical care under Internal Revenue Code §213.

Many taxpayers get no tax benefit here. You must itemize deductions to use it. You also must clear the medical expense AGI threshold that applies for the year.

Example: You drive to recurring physical therapy appointments. You keep a log with dates, destinations, and miles. Those miles can be included with other medical expenses if you itemize.

Moving mileage (newly expanded group)

Moving mileage is largely unavailable for most taxpayers since 2018. For 2026, it remains available mainly for:

• Eligible active-duty U.S. Armed Forces moving under orders, and
• Certain members of the intelligence community, after December 31, 2025, when a change of assignment requires relocation.

This expansion is part of Public Law 119-21, referenced in Notice 2026-10.

Charitable mileage

Charitable mileage covers miles driven while providing unpaid services to a qualified charitable organization. The rate is fixed at 14 cents per mile by law (Internal Revenue Code §170(i)).

Example: You drive to deliver meals for a qualified nonprofit. You may deduct qualifying miles if you itemize and follow the charitable substantiation rules.

Before/After: 2025 vs. 2026 mileage rates

The table below shows what changed effective January 1, 2026.

Legal and regulatory context behind the rates

The IRS uses two different legal mechanisms here.

• The charitable mileage rate is statutory. Congress set it, so it does not move with annual cost studies.
• The business, medical, and moving rates come from an annual cost study. The business rate reflects fixed and variable costs. Medical and moving reflect variable costs only. (See Notice 2026-10 and the background rules in Rev. Proc. 2019-46.)

Another important change affects who can actually deduct mileage. Under the rules made permanent by the One, Big, Beautiful Bill Act, many workers cannot claim unreimbursed employee travel as a miscellaneous itemized deduction.

• Many W-2 employees cannot deduct unreimbursed mileage on Schedule A.
• Reimbursement policies matter more. If your employer reimburses under an accountable plan, reimbursements are generally not taxable and you do not take a deduction. Accountable plan rules are discussed in IRS guidance and employer plan documents.

Some taxpayers can still deduct certain unreimbursed employee travel as an adjustment to income. Notice 2026-10 cites examples tied to Internal Revenue Code §62(a)(2).

These rules can apply to certain reservists, fee-basis officials, performing artists, and eligible educators.

For immigrants, the practical point is simple. Your visa type does not decide deductibility. Your worker classification does. W-2 employees often need reimbursements. Self-employed filers often claim Schedule C deductions.

Authoritative IRS starting points include Publication 463 (Travel, Gift, and Car Expenses) and Publication 519 (U.S. Tax Guide for Aliens) at irs.gov/forms-pubs.

Election and usage rules (standard mileage vs. actual costs)

The standard mileage rate is optional. You can choose the standard mileage rate or use actual expenses such as gas, oil, repairs, insurance, registration, depreciation, and other eligible costs.

The best choice depends on your miles, vehicle costs, and recordkeeping. The prose below explains key rules; use the interactive tool provided in this section for a tailored comparison of the two methods.

1. Standard mileage rate. Multiply qualifying miles by the IRS per‑mile rate.
2. Actual expenses. Track and deduct specific vehicle costs, including depreciation where allowed.

Owned vehicles: the first-year choice matters

If you own the vehicle and want to use the standard mileage rate for business, you generally must choose it in the first year the car is available for business use. That first-year choice can affect your ability to switch methods later.

Notice 2026-10 points back to Rev. Proc. 2019-46 for these method rules.

Leased vehicles: consistency is required

If you lease and use the standard mileage rate, you generally must use that method for the entire lease period, including renewals. This surprises many first-time filers.

Common limitations

The standard mileage rate is not available in certain situations. Limits can apply if you operate multiple vehicles at the same time, or if you use certain depreciation methods.

The details are in Rev. Proc. 2019-46 and IRS guidance.

Recordkeeping: logs still matter

Whether you use standard mileage or actual costs, you should keep dates, destinations, and odometer records. Specifically, keep:

• Date and destination
• Business purpose
• Starting and ending odometer readings, or miles driven
• Total miles for the year and business miles for the year

The substantiation rules for listed property are part of the §274(d) framework referenced in Rev. Proc. 2019-46.

Notices, forms, and references

The official IRS document announcing the 2026 rates is Notice 2026-10. It also provides:

• The portion of the business mileage rate treated as depreciation (35 cents per mile for 2026).
• Limits used for certain employer reimbursement approaches, including FAVR plans.
• Maximum fair market value thresholds for employer-provided auto valuation rules.

Where mileage often shows up on the tax return:

• Schedule C (Form 1040) for self-employed business driving.
• Schedule A (Form 1040) for charitable mileage and medical mileage, if you itemize.
• Schedule 1 (Form 1040) for limited groups who can claim certain unreimbursed employee expenses as an adjustment to income.
• Moving expenses only for the eligible military and intelligence community groups described in Notice 2026-10.

For primary IRS references, start at irs.gov/individuals/international-taxpayers and irs.gov/forms-pubs. Publication 519 is particularly helpful for residency and filing-status questions.

Moving expenses and special cases (military and intelligence community)

For tax year 2026, moving expense deductions are still the exception. They generally apply only if you meet the eligibility rules tied to Internal Revenue Code §217(g), as updated for certain intelligence community members after December 31, 2025.

If you are eligible, the moving mileage rate is part of a larger documentation picture. Keep your written orders or change-of-assignment documentation and detailed logs.

• Written orders or change-of-assignment documentation
• Dates of travel and relocation
• Mileage logs and receipts for other moving costs that qualify
• Proof the move was incident to the qualifying relocation requirement

This is one area where immigration status and employment category can intersect in complicated ways. For example, many visa holders do not qualify for moving deductions, even if they moved for a job. The rule is not based on immigration intent. It is based on the narrow statutory exceptions.

Recommended actions and timeline (tax year 2026)

1. Start a mileage log on January 1, 2026. Write down purpose and miles for each trip.
2. Separate commuting from business driving. Keep clear patterns in your records.
3. If you are a W-2 employee, review reimbursements. Ask whether your employer uses an accountable plan.
4. If you are self-employed, compare standard vs. actual costs early. The first-year method choice can matter for owned vehicles.
5. If you qualify for military or intelligence community moving rules, save orders now. Keep relocation documents with your tax records through filing season.