IRS hands workers bigger tax break for business expenses in 2026

Group 1 - The IRS announced an increase in the standard mileage rate for business driving by 2.5 cents per mile, effective January 1 [1][3] - The new standard mileage rates will be 72.5 cents per mile for business use, 20.5 cents per mile for medical purposes, and 20.5 cents per mile for moving purposes for certain active-duty members [3][5] - The mileage rate for charitable organizations remains unchanged at 14 cents per mile [3][5] Group 2 - The standard mileage rate is applicable to various types of vehicles, including fully-electric, hybrid, gasoline, and diesel-powered vehicles [5] - Taxpayers have the option to use the standard mileage rate or calculate actual vehicle costs for tax deductions [6]