Starting January 1, 2026, the IRS standard mileage rate will be 72.5 cents per mile driven for business purposes (up from 70 cents in 2025). This rate also applies to electric and hybrid vehicles.
Use of this rate is optional for private employers, though it’s widely accepted as an easy and standard reimbursement rate for employees who use their personal vehicle for work. If your organization uses the IRS rate to calculate mileage reimbursement, be sure to update your systems to account for this change.
The 2026 IRS standard mileage rate was announced on December 29, 2025.