- The 2026 rates at a glance
- How to work out your 2026 deduction
- How the 2026 rate compares
- Standard rate vs actual costs
- What the standard rate covers, and what it doesn't
- Keeping a mileage log that holds up
- Who can claim it
- Self-employed vs gig drivers
- Why the rate went up mid-year
- My verdict
- Frequently asked questions
The 2026 IRS standard mileage rate for business is 72.5 cents a mile for driving from January 1 to June 30, and 76 cents a mile from July 1 to December 31, after the IRS raised it mid-year. The medical and military moving rate went from 20.5 to 23.5 cents, and the charity rate stayed at 14 cents.
If you set your mileage rate in January and didn't look again, you're using the wrong number for half the year, and you'll underclaim. The IRS revised the 2026 rates part-way through, which it rarely does: before this, its own rate table shows mid-year changes only in 2022 and 2011. So for 2026 you need to split your mileage log at July 1.
The 2026 rates at a glance
| Purpose | Jan 1 to June 30 | July 1 to Dec 31 |
|---|---|---|
| Business | 72.5 cents a mile | 76 cents a mile |
| Medical | 20.5 cents a mile | 23.5 cents a mile |
| Moving (certain active-duty military and intelligence community) | 20.5 cents a mile | 23.5 cents a mile |
| Charity | 14 cents a mile | 14 cents a mile |
The rates apply to electric and hybrid vehicles as well as petrol and diesel ones, and to cars, vans, pickups and panel trucks.
How to work out your 2026 deduction
- Split your business mileage log into miles driven before July 1 and from July 1.
- Multiply the first half's miles by 72.5 cents.
- Multiply the second half's miles by 76 cents.
- Add the two together. That's your standard mileage figure, before parking and tolls.
A worked example: 4,000 business miles in the first half is 2,900 dollars, and 4,000 in the second half is 3,040 dollars, so 5,940 dollars in total. Using 72.5 cents for all 8,000 miles would give 5,800 dollars, 140 dollars short. These sums are mine, worked from the IRS rates.
How the 2026 rate compares
| Year | Business rate (cents a mile) |
|---|---|
| 2023 | 65.5 |
| 2024 | 67 |
| 2025 | 70 |
| 2026, first half | 72.5 |
| 2026, second half | 76 |
Standard rate vs actual costs
The standard rate is optional. You can instead add up your actual vehicle costs and claim the business share. Two IRS rules decide whether you can switch later:
- Cars you own: you must choose the standard rate in the first year the car is used for business. After that you can pick either method in later years.
- Leased cars: if you use the standard rate, you must stick with it for the whole lease, including renewals.
So the first year matters. If you start with actual costs on a car you own, you can't move to the standard rate for that car later.
What the standard rate covers, and what it doesn't
The mileage rate is meant to cover the running costs of the car, which is why the IRS bases the business figure on a study of both fixed and variable costs. The IRS says parking fees and tolls for business use are deductible separately, on top of the mileage rate, whichever method you use. So don't fold them into your miles, and keep the receipts. And only log trips that have a business purpose: visiting clients, collecting supplies, driving to a job.
Keeping a mileage log that holds up
- Date of each trip.
- Start and end point, or the client you visited.
- Business purpose.
- Miles driven.
- For 2026, a clear marker in the log at July 1, so the two rates are easy to apply.
A log you fill in as you go is far stronger than a reconstruction in March. Apps can record trips automatically, but check they've switched to the new rate for July onwards, or export the raw miles and do the sum yourself.
Who can claim it
The self-employed, gig drivers and business owners claim business mileage against their business income. Employees are a different story: the IRS says you can't claim a miscellaneous itemised deduction for unreimbursed employee travel, with exceptions for certain educators, reservists, state and local officials and performing artists. If you're an employee, the rate is mostly what your employer uses to reimburse you.
Self-employed vs gig drivers
If you drive for a delivery or rideshare app, mileage is often your biggest deduction, and the July change matters more to you than to most. Many apps show the miles you drove with a passenger or order, but not every mile you drive while working, such as heading to the next pickup. Your own log should capture the business miles the app doesn't, as long as they're for the work.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Why the rate went up mid-year
The business rate is based on an annual study of the fixed and variable costs of running a car, while the medical and moving rate uses only the variable costs. The IRS issued Announcement 2026-11 to revise the rates from July 1, replacing the figures it had published in Notice 2026-10. If your reimbursement policy or invoicing uses the IRS rate, update it for the second half.
My verdict
For 2026, split the log at July 1 and use both rates, or you'll understate your deduction. It's an easy fix that's worth doing before you file, and if you've already sent invoices or reimbursed staff at the old rate, it's worth checking those too. Keep a contemporaneous mileage log, because a rate is worthless without the miles to back it. A good time tracking tool helps with client trips, and a receipt scanner app handles the parking and tolls.
Frequently asked questions
What is the 2026 standard mileage rate?
For business, 72.5 cents a mile from January 1 to June 30, and 76 cents a mile from July 1 to December 31.
Why are there two mileage rates for 2026?
The IRS revised the rates mid-year in Announcement 2026-11, effective July 1, 2026.
What is the 2026 medical mileage rate?
20.5 cents a mile to June 30, then 23.5 cents a mile from July 1.
Did the charity mileage rate change in 2026?
No. It stayed at 14 cents a mile, which is set by statute.
Can employees deduct mileage in 2026?
Generally no. Unreimbursed employee travel isn't deductible, except for certain educators, reservists, officials and performing artists.
