The optional standard mileage rate for business use of automobiles will increase 2.5 cents next year, while the mileage rate for vehicles used for medical purposes will decrease half a cent, the IRS announced.
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Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One Big Beautiful Bill Act, certain members of the intelligence community.
According to
- 72.5 cents per mile driven for business use, up 2.5 cents from 2025;
- 20.5 cents per mile driven for medical purposes, down a half cent from 2025;
- 20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced half a cent from last year; and,
- 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.
The rates apply to full-electric and hybrid automobiles, as well as to gasoline and diesel-powered vehicles.
Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle. Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Later, they can choose to use the standard mileage rate or actual expenses.
For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.
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