Effective 01/01/2026, the IRS has increased the standard business mileage rate to 72.5¢ per mile. These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles. The standard medical mileage rate at 20.5¢ per mile. These new rates apply to mileage reimbursements paid to an employee on or after January 1, 2026 with respect to transportation expenses paid or incurred by the employee on or after January 1, 2026.

The rate used for charitable deduction purposes, set by statute rather than IRS, remains at 14¢ per mile.