

Those driving frequently for their jobs will be able to increase their deductible expenses on next year’s taxes.
The Internal Revenue Service recently announced that it would increase the optional standard mileage rate for business use of vehicles by 2.5 cents, putting it 72.5 cents per mile. However, rates for vehicles used for medical purposes or for moving active-duty military personnel dropped a half cent to 20.5 cents per mile. Vehicles driven for charitable purposes remained at 14 cents per mile.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.
Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.
For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.
The formal IRS notice on the mileage changes is available as a PDF: Notice-2026-10
