Posted on: January 16, 2026
The Internal Revenue Service has announced the 2026 standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes, and for the use of an automobile to obtain medical care.
HighlightsImpacted Employers: All employers |
On December 29, 2025, the Internal Revenue Service issued via Notice 2026-10 the 2026 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.
As of January 1, 2026, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:
*Applicable to members of the Armed Forces and Intelligence Community Only.
Section 70113(a) of the One Big Beautiful Bill Act made permanent the disallowance for the deduction for moving expenses for most taxpayers. Consequently, the moving mileage rate of 20.5 cents applies only to "members of the Armed Forces on active duty who move pursuant to a military order... and members of the intelligence community who move after December 31, 2025, pursuant to a change of assignment which requires relocation."
Thus, except for taxpayers that are members of the Armed Forces and the Intelligence Community, the standard mileage rate provided in Notice 2026-10 is not applicable for the use of an automobile as part of a move.
Employers should review the updated mileage rates.
HighlightsImpacted Employers: All |
On December 29, 2025, the Internal Revenue Service announced via Notice 2026-10 that the standard mileage rate, effective January 1, 2026, for use of an automobile to obtain medical care is 20.5 cents per mile. This is a decrease of a half cent from the 2025 rate of 21 cents.
Transportation expenses, such as automobile mileage, that qualify as tax-deductible medical expenses under Internal Revenue Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health flexible spending arrangement, health reimbursement arrangement, or health savings account if the expense is “primarily for, and essential to, medical care.”
Employers should review the updated mileage rates.
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