05 January 2026 IRS releases federal mileage rates and luxury vehicle limit for 2026 Effective January 1, 2026, the business standard mileage rate for use of a car (including vans, pickup trucks and panel trucks) increases from $0.70 to $0.725 and the rate for medical and relocation mileage decreases from $0.21 to $0.205. Mileage related to charity is set by law and remains at $0.14 per mile. (Notice 2026-10, Notice 2025-05.) It is important to note that taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses except with limited exceptions for certain federal personnel. Pursuant to the vehicle valuation limit that applies to use of the optional fleet-average and vehicle cents-per-mile valuation methods, the maximum fair market value of a vehicle (including trucks and vans) first made available to employees in calendar year 2026 increases from $61,200 to $61,700.
Document ID: 2026-0112 | ||||||||||||||||
