### IRS Adjusts Mileage Rates for 2026: A New Tax Landscape for Drivers In a significant update for taxpayers, the Internal Revenue Service (IRS) has announced changes to the standard mileage rates for 2026. The new rates will impact how millions of Americans calculate their driving-related tax deductions. The standard mileage rate for business travel will increase to **72.5 cents per mile**, reflecting a **2.5-cent increase** from the previous year. Conversely, the mileage rates for medical purposes will see a slight decrease, dropping by **0.5 cents**. This adjustment is part of the IRS's annual review, which considers inflation and updated cost data to determine the rates applicable for various vehicle uses, including business, medical, and charitable purposes [https://www.mychesco.com/a/news/national/irs-mileage-rates-shift-for-2026-as-new-car-loan-tax-break-takes-shape]. ### Breakdown of the IRS Mileage Rate Changes 1. **Business Mileage Rate Increase**: - The standard mileage rate for business use will rise to **72.5 cents per mile** starting January 1, 2026 [https://www.newsbreak.com/the-spun-510012/4422510736336-irs-2026-mileage-rate-72-5-cents-per-mile-and-what-it-means]. 2. **Medical and Moving Mileage Rate Decrease**: - The mileage rate for medical purposes will decrease to **20.5 cents per mile**, reflecting a **0.5-cent reduction** [https://www.marshallindependent.com/news/national-news-apwire/2025/12/irs-increases-business-mileage-rate]. 3. **Charitable Mileage Rate**: - The rate for charitable work remains unchanged at **14 cents per mile** [https://conservativeangle.com/irs-hands-workers-bigger-tax-break-for-business-expenses-in-2026]. 4. **Implications for Taxpayers**: - These changes are expected to provide a financial boost for self-employed individuals, gig workers, and small businesses that rely on personal vehicles for business purposes [https://www.wwltv.com/article/news/nation-world/irs-standard-mileage-rate-increase/507-d5a4e76a-8cf9-4103-81ce-f81d2f793cb6]. ### Supporting Data on Mileage Rates - **2026 Mileage Rates**: - **Business Use**: **72.5 cents per mile** - **Medical Use**: **20.5 cents per mile** (decreased by 0.5 cents) - **Moving Purposes**: **20.5 cents per mile** (same as medical) - **Charitable Work**: **14 cents per mile** (unchanged) [https://www.indexbox.io/blog/irs-announces-2026-standard-mileage-rates-business-rate-rises-to-725-cents]. ### Conclusion: A New Era for Mileage Deductions The IRS's adjustments to the mileage rates for 2026 signify a notable shift in the tax landscape for drivers. 1. **Increased Business Rate**: The rise to **72.5 cents per mile** for business use is a positive development for many taxpayers, potentially increasing their tax deductions. 2. **Decreased Medical Rate**: The slight decrease in the medical mileage rate may affect those who rely on vehicle use for healthcare-related travel. 3. **Stable Charitable Rate**: The unchanged rate for charitable work indicates a consistent approach to supporting volunteer efforts. Overall, these changes reflect the IRS's ongoing efforts to align tax deductions with current economic conditions and costs associated with vehicle use [https://www.cpapracticeadvisor.com/2025/12/30/irs-raises-business-standard-mileage-rate-to-72-5-cents-per-mile-for-2026].