- The IRS raised the 2026 business mileage rate to 72.5 cents per mile.
- Medical rate ticked down slightly, charitable rate unchanged from ’25.
- New rate is still lower in real terms than the original set 55 years ago.
If you clock a lot of miles for work the US Internal Revenue Service just made your life a little bit sweeter. For 2026 the standard mileage rate for business travel will be 72.5 cents per mile, up 2.5 cents from last year.
That rate applies whether you’re in a hybrid, EV, diesel or good old combustion gas guzzler, and it means every mile you drive for business is worth a bit more when you sit down with your tax return. The difference in your wallet might only be a couple of hundred bucks, but it could be enough to help you justify an upgrade to something a little thirstier with more cylinders.
The standard mileage rate has also been ticking upward over the past few years:
- 58.5 cents per mile — first half of 2022
- 62.5 cents per mile — second half of 2022
- 65.5 cents per mile — 2023
- 67 cents per mile — 2024
- 70 cents per mile — 2025
- 72.5 cents per mile — 2026
Better, but not best
The mileage rate system dates to the early 1970s when the IRS first introduced it as a way to simplify deductions for business auto use. In 1971 the rate was just 10 cents per mile, Forbes reports, and while that sounds tiny today, once you adjust for inflation it works out to roughly $1.05 per mile in 2026 money, which is actually a lot richer than the current rate.
Related: Automakers Found A New Way To Make You Pay For Tariffs Without Touching The MSRP
Still, any self-employed Brits reading this might be surprised at how generous the new 72.5 cent per mile looks compared with what they get. In the UK businesses and self-employed drivers typically use 45p per mile for the first 10,000 business miles (16,000 km) and 25p per mile for any remaining miles.
That converts to only 61 and 34 US cents per mile, despite fuel costing far more in Britain than in the US, where the national average is around $3 per gallon.
Not all US drivers get that 72.5 cents rate, the mileage figure for medical travel, for instance, taking a small step backwards for 2026 to 20.5 cents per mile, the same as the rate for moving active-duty members of the Armed Forces. Both are down 0.5 cents on last year’s rate.
Charity begins at home, not the IRS
And anyone driving for charitable organizations only gets 14 cents, the same as they did in 2025. It’s lower than the other rates because it doesn’t take account of depreciation, or insurance and repair costs. Forbes claims this rate hasn’t changed since Clinton was in the White House.
Drivers who think these rates are too mean can choose to calculate the true costs of using their vehicles instead, but only from the second year that vehicle is used for business trips. And if your vehicle is leased you’re stuck with the official rate.
