Latest News About Mileage Allowance 2026

Here are the latest changes on mileage allowance for 2026 and what they mean for you.

Key takeaway

• The standard mileage rate for business use in 2026 is 72.5 cents per mile, up from 70 cents in 2025. This reflects an inflation adjustment and updated cost data.[1][5][6]

What changed and where it applies

• Business mileage: 72.5 cents per mile for 2026.[5][6]
• Medical mileage: 20.5 cents per mile in 2026 (down from 21 cents in 2025).[3][5]
• Moving mileage: 20.5 cents per mile in 2026 for eligible individuals (e.g., certain active-duty military or specific intelligence-community members).[5]
• Charitable mileage: 14 cents per mile (unchanged; rate is set by statute).[5]
• Vehicle cost limit for fixed-and-variable rate (FAVR) plans: the maximum allowable cost basis for 2026 increases to $61,700 from $61,200 in 2025 (affects how you compute costs under FAVR).[1]
• Maximum FMV (for employer-provided vehicles under certain valuation methods): increases to $61,700 on the date the vehicle is first made available to an employee (up from $61,200).[1]
• Applicable notices: IRS Notice 2026-10 formalizes these rates and changes; IRS press coverage confirms the 72.5 cents rate and related adjustments.[6][3]

International and UK context (brief contrasts)

• Some UK NHS mileage reimbursement rates were updated to take effect from 1 January 2026, with changes based on annual reviews; ensure your local policy reflects any updates if you’re operating across borders or in a multinational setting.[2]

Practical implications

• If you reimbursed employees or tracked mileage using the 2025 rate, update your payroll/expense policies to use 72.5 cents per mile for general business travel in 2026.
• If you use FAVR or vehicle valuation methods for employer-provided vehicles, recompute the cost baselines with the new 61,700 FMV limit and related thresholds for 2026.[1]
• For medical or moving mileage claims, apply the 20.5 cents per mile rate where eligible.[5]
• If you’re budgeting for 2026, adjust forecasts to reflect higher business-mileage reimbursements, but note that charitable mileage remains at 14 cents per mile.[5]

One example

• A employee drives 1,000 miles for business in 2026. Reimbursement under the standard mileage rate would be 1,000 × 0.725 = $725 for that year (assuming the vehicle is eligible and the use qualifies as business travel).[6]

Want a quick personal check?

• Tell me your country/region and whether you’re focusing on US IRS rules or another jurisdiction. I can tailor the numbers to your policy (e.g., 2026 business mileage rate, medical/moving rates, and any local limits) and provide a short calculation worksheet.

Citations

• 2026 business standard mileage rate: 72.5 cents per mile (up from 70 cents in 2025).[6][5]
• Medical and moving mileage rates for 2026: 20.5 cents per mile; charitable rate remains 14 cents.[5]
• FAVR and FMV thresholds for 2026: $61,700 limits (up from $61,200) and FMV cap increase.[1]
• IRS Notice 2026-10 outlining standard mileage rates.[3]