Wed Dec 31 08:30:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:
Headline: IRS Announces Mileage Rate Increase for 2026, Affecting Business, Medical, and Military Travel
Washington, D.C. – The Internal Revenue Service (IRS) announced Monday that the standard mileage rate for business use of vehicles will increase to 72.5 cents per mile starting January 1, 2026. This marks a 2.5-cent increase from the 2025 rate.
The adjustment also impacts rates for medical and moving expenses. The mileage rate for medical purposes and moving expenses for certain active-duty members of the armed forces and intelligence community will be 20.5 cents per mile, a decrease of half a cent from the 2025 rate.
The IRS stated the changes reflect updated cost data and annual inflation adjustments. The revised rates apply to all qualifying vehicles, including fully electric, hybrid, gas, and diesel-powered automobiles.
Taxpayers should note that using the standard mileage rates is optional. Individuals who use a car for work have the alternative option of calculating the actual costs of operating their vehicle to determine their deductible expenses. The IRS encourages taxpayers to consult with a tax professional to determine the most advantageous method for their specific circumstances.
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