The IRS has announced new mileage rates for 2026. If you use your personal car for work, medical, moving, or charitable The IRS has announced new mileage rates for 2026. If you use your personal car for work, medical appointments, moving, or charitable activities, these rates help you calculate deductions or reimbursements without tracking every expense.
Updated Rates for 2026
- Business: 72.5¢ per mile (up from 70¢ in 2025)
- Medical & Moving: 20.5¢ per mile (down from 21¢)
- Charitable: 14¢ per mile (same as last year)
Business mileage includes both fixed and variable costs like depreciation and fuel. Medical and moving only cover variable costs such as gas and oil.
Vehicle Value Limit
If your employer provides a car for personal use, the IRS sets a maximum value for certain rules. In 2026, that limit is $61,700. This also applies to reimbursement plans like FAVR, which base payments on local driving costs.
Why It Matters:
Using the correct mileage rate ensures your deductions or reimbursements are accurate and compliant. Keep these numbers in mind for your 2026 reporting.