The Internal Revenue Service recently announced standard mileage rates for 2026. The allowable rate for business vehicle use is now 72.5 cents per mile—a 2.5-cent increase from 2025. Meanwhile, the standard rate volunteers may deduct for serving charitable organizations is still only 14 cents per mile.  

While the IRS calculates the business rate using an annual study of automobile operating costs, the charitable rate was established in the tax code in 1998 and has never been adjusted. Last year, the National Taxpayer Advocate, an internal IRS watchdog, told Congress that the charitable rate “does not reflect the current costs of automobile usage” and called for the establishment of a single consistent mileage rate that may be indexed for inflation.  

Legislation, such as the bipartisan Volunteer Driver Tax Appreciation Act led by Rep. Pete Stauber (R-Minn.) and Sen. Amy Klobuchar (D-Minn.), would largely align the charitable and business mileage rates. However, Congress has not yet taken action on these bills. 

“Volunteering is a selfless act, and our volunteer drivers should not be penalized for their service,” said Stauber when introducing his bill last year. “By increasing the mileage rate for volunteer drivers and lessening their burden, they’ll have greater peace of mind, and more people will donate their time to this important volunteer service.”  

For tips on applying the business and charitable mileage rates in your ministry—and practical pointers on a host of other tax matters—please explore ECFA’s newly published 2026 Church & Nonprofit Tax & Financial Guide.