Jacksonville, FL, December 31, 2025

The IRS has announced a significant increase in the standard mileage rate for business vehicle use, now set at 72.5 cents per mile for 2026. This 2.5 cent increase reflects rising vehicle operating costs and inflation. Local business owners are encouraged to adapt their transportation costs accordingly. The change also highlights the IRS’s ongoing assessments to support small businesses in managing expenses effectively. Taxpayers have the flexibility to choose between standard rates or calculating actual vehicle expenses based on their needs.

IRS Increases Standard Mileage Rate for Business Use in 2026

New Rates Reflect Rising Costs and Modify Reimbursement Guidelines

Jacksonville, FL – As business owners across the nation prepare for 2026, the Internal Revenue Service (IRS) has announced an increase in the standard mileage rate for the business use of vehicles, raising it to 72.5 cents per mile. This 2.5 cents increase over the 2025 rate signals both the ongoing assessments of vehicle operating costs and the influence of inflation on small businesses. Entrepreneurs here in Jacksonville can take this adjustment into account as they evaluate their transportation needs and costs.

Understanding and managing operational expenses is crucial for any small business, particularly in a competitive environment like Jacksonville. The adjustment in standard mileage rates can help relieve the financial pressure on businesses that require vehicle use, demonstrating how meticulous evaluations by the IRS can positively impact local economic activity. At the same time, the option to calculate actual vehicle expenses remains available, giving business owners the flexibility to choose the method that benefits them most.

Details of the Mileage Rate Adjustment

Effective January 1, 2026, the new standard mileage rate for business use will be 72.5 cents per mile, a rise from 70.0 cents in 2025. This increase reflects the IRS’s thorough evaluation of operating costs, including depreciation, insurance, maintenance, gas, and oil. The adjusted rate applies to all types of vehicles—gasoline, diesel, hybrid, and electric—highlighting the importance of adaptability in today’s rapidly changing automotive landscape.

Impact on Medical and Moving Rates

Interestingly, while the business mileage rate has increased, the IRS has also modified rates for medical and moving purposes, specifically for certain groups. The new rate for these purposes will be 20.5 cents per mile, down by half a cent from the preceding year. This adjustment primarily affects active-duty members of the Armed Forces and members of the intelligence community. It’s essential for these individuals to stay informed about these changes as they plan their financial scenarios for the upcoming year.

Options for Taxpayers

Taxpayers in Jacksonville, and across the nation, should note that they have a choice in how they report vehicle expenses. They can either use the newly established standard mileage rates or calculate their actual vehicle expenses for work-related driving. This flexibility is important as it allows businesses to optimize their tax outcomes based on their specific operational realities.

Staying Compliant with Reimbursement Rates

Employers who reimburse employees for business-related vehicle use should take this opportunity to revise their reimbursement rates in alignment with the new standard. Keeping up to date with these changes helps ensure compliance and promotes fairness in employee reimbursements—striking a balance essential for sustaining employee morale and trust.

Looking Ahead: Navigating Changes

The IRS also maintains that the mileage rate for charitable organizations will remain unchanged at 14 cents per mile. This consistency is important for nonprofits, which often operate on tight budgets and depend heavily on volunteer work. Understanding these rates can support nonprofits in maximizing their operational efficiencies as they contribute to the community.

Conclusion

In summary, the increase in the business standard mileage rate provides an essential financial consideration for business owners in Jacksonville as they strategize for the new year. These adjustments not only reflect current economic realities but also afford local entrepreneurs the opportunity to better manage their vehicle-related expenses. As we look toward 2026, it’s imperative for all stakeholders to stay engaged and informed, ensuring that they are well-prepared to navigate the economic landscape. Supporting our local businesses and community initiatives can foster a stronger, more resilient economy in Jacksonville.

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Author: STAFF HERE JACKSONVILLE WRITER

The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.