IRS Mileage Rate 2026: 72.5 Cents, Then 76 Cents from July 1
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How we wrote this: A summary of the IRS standard mileage rates page, Tax Topic 510 and Announcement 2026-11 (linked below), checked October 28, 2026. It is general information, not tax advice.
For 2026 the IRS did something it rarely does: it raised the standard mileage rate in the middle of the year. If you drive for your business, you need both rates.
The 2026 rates
From the IRS standard mileage rates page:
| Purpose | Jan. 1 – June 30, 2026 | July 1 – Dec. 31, 2026 |
|---|---|---|
| Business (including self-employed) | 72.5 cents/mile | 76 cents/mile |
| Medical, and moving for eligible military | 20.5 cents/mile | 23.5 cents/mile |
| Charity | 14 cents/mile | 14 cents/mile |
For comparison, the business rate was 70 cents in 2025 and 67 cents in 2024.
Why it changed midyear
Announcement 2026-11, in Internal Revenue Bulletin 2026-29, revised the rates "from recent increases in the price of fuel." The new rates apply to transportation expenses paid or incurred on or after July 1, 2026. The earlier rates still apply to expenses before July 1. The charitable rate stays at 14 cents because it is fixed by law.
In practice: log the date of every business trip, then multiply January–June business miles by 72.5 cents and July–December business miles by 76 cents.
Who can use it
Per IRS Topic 510, Business use of car, most employees can't deduct unreimbursed car expenses. Exceptions include the self-employed, Armed Forces reservists, qualified performing artists and fee-basis state or local government officials. If you use the car for both business and personal driving, you deduct only the business share.
You can use either the standard mileage rate or your actual expenses (gas, repairs, insurance, depreciation and so on, times your business-use percentage). The IRS suggests figuring both if you qualify for both.
Rules for choosing the standard rate
Topic 510 says that to use the standard mileage rate you must own or lease the car, and:
- Not operate five or more cars at the same time (as in a fleet).
- Not have claimed depreciation using any method other than straight-line, or used MACRS, or claimed a Section 179 deduction or special depreciation allowance on the car.
- Not have claimed actual expenses for a car you lease.
Timing matters:
- A car you own: choose the standard rate in the first year the car is used in your business. In later years you can switch between the standard rate and actual expenses.
- A car you lease: if you choose the standard rate, you must use it for the whole lease, including renewals.
Parking fees and tolls for business trips are deductible separately under either method, according to Topic 510.
Keep a mileage log
The deduction is only as good as your records. IRS Publication 463 says estimates aren't enough: you need an adequate written record, such as a log or trip sheet, and a record kept on a computer counts. For car expenses, its Table 5-1 lists what to record:
- The date you started using the car for business.
- The mileage for each business use, and total miles for the year.
- The date and destination of each trip.
- The business purpose.
A notes app or spreadsheet works. Keep the log with your tax records. Our guide to how long to keep business records covers how long.
Related guides
- Estimated quarterly taxes for the self-employed: a mileage deduction lowers the income you estimate tax on.
- Home office deduction basics: another deduction many self-employed people can claim.