January 2026

Federal Updates

 

IRS Announces 2026 Medical Mileage Rate

02/05/26

Author: ADP Admin/Monday, February 2, 2026/Categories: Compliance Corner , Federal Compliance Update

 

Highlights: On Dec. 29, 2025, the Internal Revenue Service announced via Notice 2026-10 that the standard mileage rate in 2026 for the use of an automobile to obtain medical care is 20.5 cents per mile.


Impacted Employers: All


Effective Date: Jan. 1, 2026


Summary : The rate decreased to 20.5 cents per mile from the 21 cents per mile rate effective in 2025.

 

 

The Details

On Dec. 29, 2025, the Internal Revenue Service announced via Notice 2026-10  that the standard mileage rate, effective Jan. 1, 2026, for use of an automobile to obtain medical care is 20.5 cents per mile. This is a decrease of a half cent from the 2025 rate of 21 cents.

Transportation expenses, such as automobile mileage, that qualify as tax deductible medical expenses under Internal Revenue Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health flexible spending arrangement, health reimbursement arrangement, or health savings account if the expense is “primarily for, and essential to, medical care.”

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Tags: 02/05/26

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