IRS Mileage Reimbursement Rate: 2026 Standard Mileage Rates and How To Use Them

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The IRS mileage reimbursement rate for 2026 is the standard per-mile amount set by the Internal Revenue Service to help taxpayers and employers calculate deductible vehicle expenses. These rates apply to business, medical, charitable and qualified moving mileage and are updated annually to reflect changes in vehicle operating costs.

Below are the 2026 standard mileage rates, how to calculate deductions or reimbursements with a mileage calculator, and practical tips to help you document trips correctly and avoid the most common mileage mistakes.

2026 IRS Mileage Reimbursement Rates for Business, Medical, Moving and Charitable Miles

Here’s a look at the 2026 standard mileage rate for different categories.

Why the IRS Sets Different Rates

The IRS uses different per-mile amounts because different kinds of driving reflect different underlying costs and tax rules:

• The business standard mileage rate is based on an annual study of fixed and variable costs of operating a car.
• The medical and moving rates are based on variable costs only.
• The charitable rate is set by law, which is why it rarely changes.

Is the Standard Mileage Rate Mandatory?

No. The standard mileage rate is optional, not required. You can generally choose either:

• The standard mileage rate — simple per-mile method, or
• The actual expense method — track your real vehicle costs

Who Typically Uses These Rates?

You’ll see the internal revenue service mileage reimbursement rate used most by:

• Self-employed workers and small business owners claiming deductions
• Employers reimbursing employees for business driving
• Volunteers driving for qualified charitable organizations
• Active-duty service members and eligible intelligence community members with qualified moving mileage

This Is Worth Noting

The IRS states the rates apply to fully electric and hybrid vehicles in addition to gas and diesel vehicles.

If you need comparisons for forms, policies or reimbursement plans, here’s how the rate has changed in recent years:

• 2024 business rate: 67 cents per mile
• 2025 business rate: 70 cents per mile
• 2026 business rate: 72.5 cents per mile

Those comparisons can matter if you’re building an employer policy, auditing logs or reviewing prior-year deductions.

How To Calculate Mileage Reimbursement or Deductions Using IRS Rates

Understanding how to calculate mileage reimbursement or how to calculate gas reimbursement is the first step, but the actual math and documentation required are what makes it “IRS-proof.”

How To Calculate Business Mileage Using the IRS Rate

Step-by-step

1. Track eligible miles. Use a mileage log or app with the date, destination, purpose and miles driven.
2. Multiply by the correct IRS rate. For business driving in 2026, use $0.725.
3. Report or submit properly. Claim it on the correct tax form if deductible, or submit it for employer reimbursement.

For Example

Imagine, for example, that you drove 1,200 business miles in 2026. Your reimbursement or deduction value would be $870, or 1,200 miles x the IRS rate of $0.725.

A mileage calculator can do this instantly, but it’s good to understand how to do the calculation yourself.

Claiming Mileage on Your Tax Return vs. Getting Reimbursed by an Employer

• Getting reimbursed: Many employers reimburse employees using the IRS business rate because it’s a widely accepted benchmark and easy to administer.
• Deducting on your tax return: Self-employed taxpayers and certain other groups may deduct qualifying mileage as part of business expenses rules.

In general, unreimbursed employee business mileage is not deductible as an itemized deduction under current federal rules. There are limited exceptions for certain taxpayers, but most W-2 employees should assume mileage is handled through employer reimbursement, not a tax write-off.

Even if you use the standard mileage rate, the IRS still needs documented records that support:

• Miles driven
• Time and place
• Business purpose

The IRS’s vehicle expense and substantiation rules are summarized in its guidance on business use of a car.

What trips don’t count:

• Normal commuting from home to a regular workplace
• Personal errands, family travel, school drop-offs
• Trips without a documented business, medical, moving or charitable purpose
• “Estimated” miles with no log to back them up

Standard Mileage Rate vs. Actual Expense Method: Which Is Better?

The IRS standard mileage rate is popular because it’s simple, but it’s not automatically the best result. Choosing the right method comes down to recordkeeping and your actual operating costs.

What the Standard Mileage Rate Covers

When you use the standard mileage rate, the per-mile amount is intended to cover typical operating costs, including fixed and variable costs for business use.

This method is usually a good fit if:

• You want simpler tracking — miles instead of every receipt.
• You drive a lot of qualifying miles.
• Your car is relatively inexpensive to operate.
• you want a clean, repeatable system you can run through a mileage calculator.

What Counts Under the Actual Expense Method

With the actual expense method, you track the business share of real costs, such as:

• Gas and oil
• Insurance
• Repairs and maintenance
• Tires
• Registration fees
• Depreciation or lease payments
• Other operating costs tied to business use

This method may be better if:

• You have high repair, maintenance or insurance costs.
• Your vehicle is expensive relative to miles driven.
• Your business mileage is modest, but your costs are high.
• You already keep strong records and receipts.

How to select the right method:

• If you want the easiest method, or if you drive a lot for work: The standard mileage rate is usually better.
• If you want maximum precision, or if you have high costs: The actual expense method can work better.

IRS Mileage Reimbursement Tips

There are some steps you can take — and others you’ll want to avoid — to maximize your mileage deduction.

Common Mileage Deduction and Reimbursement Mistakes

When it comes to tax law and deductions, it can be easy to make mistakes. Here are some of the common ones that tend to trip up taxpayers when it comes to mileage deduction and reimbursements:

• Commuting vs. business mileage confusion: Commuting is not the same as traveling on business.
• Missing mileage logs: You’ll need to keep records to validate your claims.
• Mixing personal and deductible trips: Personal miles are not deductible or reimbursable, so you’ll need to differentiate between the two.
• Using the wrong category: Business, medical, moving and charitable mileage all have different rates.

Employer Mileage Reimbursement Rules To Know

Employers do not have to use the IRS rate, but many do because it’s the federal standard for non-taxable reimbursement.

If your employer reimburses you, you’ll need to keep the same style of mileage log you’d keep for taxes. If your employer pays above the IRS benchmark without proper documentation rules, some reimbursements can become taxable in certain scenarios.

You don’t need to memorize tax law to do this right. Just log trips consistently and submit timely reports.

Special Mileage Rules Worth Knowing

• Electric and hybrid vehicles: The IRS states that the 2026 rates apply to fully electric and hybrid vehicles, too.
• Qualified military and intelligence community moving: The 2026 moving rate applies to eligible groups under qualified rules.
• Charitable driving limitations: The charitable mileage rate is fixed at 14 cents per mile and doesn’t rise with fuel prices.

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