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IRS Increases Standard Mileage Rate To 72.5 Cents For 2026

CATEGORY: Client Update for Public Agencies
CLIENT TYPE: Public Employers
DATE: Feb 09, 2026

On December 29, 2025, the IRS announced that the standard mileage rate for vehicles driven for business purposes will increase to 72.5 cents per mile effective January 1, 2026. This is 2.5 cents greater than the 2025 rate. The standard mileage rate applies to fully-electric and hybrid vehicles, as well as gasoline and diesel-powered vehicles. Please see IRS Notice 2026-10 for more information.

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