Tax Tip #296

As of January 1, the standard mileage rates for the use of cars, vans, pickups or panel trucks is now: 

• 72.5 cents per mile driven for business use. This is an increase of 2.5 cents from 2025. 
• 20.5 cents per mile driven for medical purposes and moving purposes for qualified active-duty members of the Armed Forces, a decrease of half a cent from 2025.
• 14 cents per mile driven in service of charitable organizations, unchanged from 2025. 

The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles. Taxpayers can elect to calculate the actual costs of using their vehicle rather than using the standard mileage rates. 

For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.

If you have any questions, feel free to reach out to a team member.