2026 Auto Mileage Rate is Announced by IRS
The standard rate increases to 72.5 cents per mile
The IRS just issued Notice 2026-10 that clarifies the new auto mileage rates for 2026.
The standard rate for business use increases 2.5 cents to 72.5 cents per mile.
The medical and moving rate increases .5 cents to 20.5 cents per mile and the charity rate remains the same at 14 cents per mile.
The standard rate is based on fixed and variable costs while the other rates are simply based on variable rates.
Also, there is a component of depreciation built into the standard rate which means a person will likely have a gain or loss on the trade or sale of the vehicle based on the number of miles driven at the standard rate.
The portion of the standard rate related to depreciation increases from 33 cents per mile to 35 cents per mile.
This means that when you sell or trade the auto, you will need to do a calculation of the gain or loss for the business portion, plus report any gain on the personal portion. A loss on the personal portion is non-deductible.