State Accounting Service

02/05/2026

12/29/2025

IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents
Dec. 29, 2025

WASHINGTON — The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical
purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One, Big, Beautiful Bill, certain members of the intelligence community.

Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
• 72.5 cents per mile driven for business use, up 2.5 cents from 2025.
• 20.5 cents per mile driven for medical purposes, down a half cent from 2025.
• 20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
• 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

12/08/2025

Wanted to post a few items from the Big Beautiful bill that may affect many of you on taxes in 2025 and going forward in 2026.

Car Loan interest: The purchase must be a new car and purchased after Dec 31 2024. The limit is $10,000 and the income limitation before phase out is single ($100K) and MFJ ($200K).

Seniors 65 or older get an additional standard deduction of $6,000 for single and $12,000 for MFJ. The limitation on income is $75K for single and $150K for MFJ.

The no tax on tips is up to $25K and income limitation is $150K single and $300K for MFJ.

The no tax on overtime is $12,500 single and $25K for MFJ with the same income limitations as the tips. This deduction is just for the half time of the overtime. Your check stub may say you had $27K in overtime but only 9K in this scenario would be exempt.

For both the tip and overtime deduction you must file jointly if married to qualify.

One other note going forward for 2026 is the charity contribution. Even if you do not itemize and take the standard deduction, starting in 2026 if u make qualified charitable contributions you can add up to $1000 single and $2,000 MFJ on top of the standard deduction so remember in 2026 to get your charity receipts.

Lastly, the energy credits, doors, windows, furnace, AC unit, insulation, etc expires Dec 31, 2025 so you have a little time left to get these credits.