Now that 2026 is in full swing, drivers who operate vehicles for business purposes and receive reimbursement should be aware of the new operational standard mileage rate. The IRS increased the rate by 2.5 cents from last year, putting the current rate at 72.5 center per mile driven.
The rate for those that drive for medical purposes saw a slight dip, with the IRS bringing it down half a cent over last year. The 2026 rate sits at 20.5 cents per mile. This is also the rate for moving expenses for certain active members of the military. The rate for those driving vehicles to serve charitable organizations is unchanged from last year and sits at 14 cents per mile for 2026.
Taxpayers often wonder if different rates apply for those driving electric and hybrid vehicles. The answer is no. The rates are the same for all vehicles that run on gas and diesel and for all smart cars.
Reach out to the Holbrook & Manter team with any questions you may have regarding this matter. We would be happy to assist you.