Driving for Work? Know the New Mileage Rates for 2026

In 2026, if you use your personal car for work, you might notice a small change in your tax deductions. The IRS has decided to increase the standard mileage rate for business use to 72. 5 cents per mile. This is a 2. 5 cent increase from the previous year. The change is based on data analysis and inflation adjustments. But it's not just about work. The IRS also sets rates for medical and moving purposes. For medical reasons, the rate drops slightly to 20. 5 cents per mile. The same rate applies to certain active-duty military members and intelligence community personnel for moving purposes. However, if you're driving for charity, the rate stays the same at 14 cents per mile.The new rates apply to all types of vehicles, whether they run on gas, diesel, or electricity. The IRS reminds taxpayers that they can choose to calculate actual vehicle costs instead of using the standard rate. But there's a catch: if it's the first year you're using the car for business, or if you're leasing a vehicle, you must use the standard mileage rate. So, what does this mean for you? Well, if you're driving more for work, you might see a bit more money back in your pocket. But if you're driving for medical reasons, you might see a slight decrease. It's all about the details, and the IRS is making sure everyone is on the same page.