265/75R16 is 1.42" shorter than 255/85R16, a −4.29% change in diameter. That is more than the 3% many tire shops use as a limit, so plan on recalibrating the speedometer and checking ABS and stability control.
Ground clearance changes by 0.71" (half the diameter change), and the tire needs 0.71" less room above it.
265/75R16 is 0.39" wider. On the same wheel offset about half of that, 0.20", moves toward the suspension and half toward the fender.
Both fit a 16" wheel; the sidewall is 0.71" shorter on 265/75R16.
Details: 255/85R16 in inches · 265/75R16 in inches · change sizes in the calculator