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Highlights:
Impacted employers: All employers
Effective date: Jan. 1, 2026
Summary: On December 29, 2025, the Internal Revenue Service issued via Notice 2026-10 the 2026 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.
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The details
On Dec. 29, 2025, the Internal Revenue Service issued via Notice 2026-10 the 2026 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.
As of Jan.1, 2026, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:
· 72.5 cents per mile for business miles driven;
· 20.5 cents per mile driven for moving purposes;* and
· 14 cents per mile driven in service to a charitable organization.
*Applicable to members of the Armed Forces and Intelligence Community Only.
Exceptions for Moving Expenses:
Section 70113(a) of the One Big Beautiful Bill Act made permanent the disallowance for the deduction for moving expenses for most taxpayers. Consequently, the moving mileage rate of 20.5 cents applies only to "members of the Armed Forces on active duty who move pursuant to a military order... and members of the intelligence community who move after Dec. 31, 2025, pursuant to a change of assignment which requires relocation."
Thus, except for taxpayers that are members of the Armed Forces and the Intelligence Community, the standard mileage rate provided in Notice 2026-10 is not applicable for the use of an automobile as part of a move.