Standard mileage rates announced for state income tax purposes

FOR IMMEDIATE RELEASE:

January 22, 2026

FOR MORE INFORMATION:
Scott Hardin, DFA

501-352-9351, [email protected]

2026 optional standard mileage rates announced for state income tax purposes

LITTLE ROCK, Arkansas (January 22, 2026) – The Arkansas Department of Finance and Administration (DFA) today announced the 2026 optional standard mileage reimbursement rates, which are applied for state income tax purposes. Act 614 of 2025 provides the authority for DFA to revise these rates via proclamation. The 2026 rates for state income tax purposes are consistent with IRS mileage rates for business, moving, medical, and charitable purposes.

For business expenses, the 2026 optional standard reimbursement rate is 72.5 cents per mile driven. It is 20.5 cents per mile driven for medical purposes. It is also 20.5 cents per mile driven for moving. Finally, the rate is 14 cents per mile driven in service of charitable organizations.

The rates apply per mile for deductible expenses paid or incurred on or after January 1, 2026. They reflect costs associated with operating a vehicle, including gas prices, vehicle maintenance, insurance, and depreciation.

For additional information on DFA, visit Home Page – Arkansas Department of Finance and Administration.

The full proclamation is below.  

Proclamation 2026 – 1

Standard Mileage Rates for Income Tax Purposes

The Secretary of the Arkansas Department of Finance and Administration, pursuant to the authority provided in Act 614 of 2025 and Arkansas Code Annotated § 26-51-423(a)(2), issues the following proclamation:

1. BUSINESS EXPENSES – The optional standard mileage rate allowed for use by an employee or self-employed individual in computing the deductible costs of operating a passenger automobile owned by them for business purposes is seventy-two and one-half cents (72.5¢) per mile for deductible expenses paid or incurred on or after January 1, 2026.

2. MEDICAL OR MOVING EXPENSES – The optional standard mileage rate allowed for use in computing the cost of operating a passenger automobile where transportation expenses are deductible as a medical or moving expense is twenty and one-half cents (20.5¢) per mile for deductible expenses paid or incurred on or after January 1, 2026.

3. CHARITABLE EXPENSES – The optional standard mileage rate for use by an individual in computing the deductible costs of operating a passenger automobile owned by them for a charitable organization is fourteen cents (14¢) per mile for deductible expenses paid or incurred on or after January 1, 2026.

Issued this 7th day of January, 2026.