The optional standard mileage rate for business uses will increase by 2.5 cents in 2026 to account for inflation and updated cost data, the IRS said Monday.
Notice 2026-10 outlines the standard mileage rates for 2026 and cost used to calculate mileage reimbursement allowances under a fixed-and variable rate plan. The guidance also said for vehicles used for medical purposes, the mileage rate will drop half a cent.
Optional standard mileage rates are used to calculate deductible driving expenses for business, medical, and charitable travel. The rates will apply for fully-electric, hybrid, gasoline and diesel-powered vehicles.
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