Short answer
For 2026, the IRS business standard mileage rate is 72.5 cents per mile for driving from January 1 to June 30, and 76 cents per mile from July 1 to December 31. The IRS raised it mid-year because of higher fuel prices. Multiply your business miles in each half of the year by that half's rate, then add business parking fees and tolls.
Most years the IRS sets one mileage rate in December and it applies to the whole of the next year. 2026 is different. The IRS announced a rate of 72.5 cents per mile for 2026, then raised it to 76 cents for driving on or after July 1. If you claim car expenses with the standard mileage rate, you now need to know how many business miles you drove in each half of the year.
This guide is for business owners and self-employed people who deduct their own car costs, for example on Schedule C. The figures come from the IRS standard mileage rates page and the IRS announcements linked at the end.
What are the IRS mileage rates for 2026?
| Type of driving | January 1 to June 30, 2026 | July 1 to December 31, 2026 |
|---|---|---|
| Business | 72.5 cents per mile | 76 cents per mile |
| Medical or military moving | 20.5 cents per mile | 23.5 cents per mile |
| Charity | 14 cents per mile | 14 cents per mile |
For comparison, the 2025 business rate was 70 cents per mile for the whole year. The charity rate stays at 14 cents because it is fixed by law, not set by the IRS each year.
Why did the mileage rate change in the middle of 2026?
The IRS published the change in Announcement 2026-11. It says the modification "results from recent increases in the price of fuel." The new rates apply to costs paid or incurred on or after July 1, 2026. The earlier rates from Notice 2026-10 still apply to anything before July 1.
How to calculate your 2026 mileage deduction
- Total your business miles from January 1 to June 30. Use your mileage log, not an estimate.
- Total your business miles from July 1 to December 31.
- Multiply each total by its rate. 72.5 cents for the first half, 76 cents for the second.
- Add business parking fees and tolls. These are deductible on top of the standard mileage rate.
Here is a worked example with made-up numbers:
| Period | Business miles | Rate | Amount |
|---|---|---|---|
| January to June | 4,000 | $0.725 | $2,900 |
| July to December | 5,000 | $0.76 | $3,800 |
| Business parking and tolls | $240 | ||
| Total | 9,000 | $6,940 |
If you had used 72.5 cents for all 9,000 miles, the mileage part would be $6,525 instead of $6,700. Splitting the year correctly is worth the few minutes it takes.
Who can use the standard mileage rate?
You can choose between the standard mileage rate and your actual car expenses (gas, repairs, insurance, depreciation and so on). The standard rate has a few rules from IRS Publication 463:
- Cars you own: to use the standard mileage rate, you must choose it in the first year the car is available for use in your business. In later years you can choose either method.
- Cars you lease: if you choose the standard mileage rate, you must use it for the entire lease period.
- Five or more cars at once: you can't use the standard mileage rate if you use five or more cars for business at the same time.
- Commuting doesn't count: driving between your home and your main or regular place of work is commuting, and it isn't deductible.
Which method gives the bigger deduction depends on the car and how you use it. A tax planning review can compare both before you commit to one in the car's first business year.
What records do you need for the mileage deduction?
The IRS expects a record made at or near the time you drive. A weekly log that covers the week's driving counts as timely. For each business trip, record:
- The date
- The business destination
- The business purpose
- The miles driven
Also note the total miles you drove the car during the year, and the date you started using it for business. A paper diary, a spreadsheet or a mileage app all work, as long as the entries are made at the time. Keep the log with your other tax records; our guide on how long to keep business records covers the time limits.
Common mistakes with the 2026 rate
- Using one rate for the whole year. January to June is 72.5 cents and July to December is 76 cents.
- Counting commuting miles. The drive from home to your regular workplace isn't business mileage.
- Rebuilding the log at tax time. A log written months later carries much less weight than one kept as you go.
- Forgetting parking and tolls. They are deductible in addition to the rate.
How Top Accounting Firm can help
Our bookkeeping team records vehicle costs as they happen, so the numbers are ready when your return is due, and our tax preparation team checks whether the standard mileage rate or actual expenses works better for your car. Book a free consultation if you want a second look at your 2026 vehicle costs.
Frequently asked questions
What is the IRS mileage rate for 2026?
Did the IRS increase the mileage rate in July 2026?
What is the 2026 mileage rate for medical and charity driving?
Can I deduct parking and tolls if I use the standard mileage rate?
Can I switch from actual expenses to the standard mileage rate?
Is driving from home to my office deductible?
Sources
- IRS: Standard mileage rates
- IRS: Internal Revenue Bulletin 2026-29 (Announcement 2026-11)
- IRS: Notice 2026-10, 2026 Standard Mileage Rates
- IRS: Publication 463, Travel, Gift, and Car Expenses
Checked against these sources on October 26, 2026. This article is general information, not tax or legal advice. Rules, fees and deadlines change, so confirm with the official source or a tax professional before you file.
