IRS Releases Mileage Rates for 2026

Mileage Rates for 2026

The IRS provided new mileage rates effective January 1, 2026, in Notice 2026-10.

• The standard mileage rate for business travel will be 72.5 cents per mile, an increase of 2.5 cents from 2025.
• The rate for deductible medical or moving expenses (available for active-duty members of the military) will be reduced by half a cent to 20.5 cents per mile.
• The charitable mileage rate for using a personal vehicle while performing volunteer services for a qualified charitable organization remains unchanged at 14 cents per mile.

The standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after January 1, 2026.

They also apply to mileage allowances that are paid to employees on or after January 1, 2026, and for transportation expenses paid or incurred by employees on or after January 1, 2026.

Thank you for choosing Paylocity as your valued service partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.