IRS mileage rate 2026: two rates in one year
The 2026 IRS standard mileage rates: 72.5 cents a business mile to June 30 and 76 cents from July 1, plus medical and charity rates, who can claim, and how to split your log.
The IRS set two business mileage rates for 2026: 72.5 cents a mile for driving from January 1 to June 30, and 76 cents a mile from July 1 to December 31. If you claim mileage or reimburse it, you need to split the year at June 30 and apply the right rate to each half.
The 2026 rates
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile |
| Medical, and moving for Armed Forces members | 20.5¢ per mile | 23.5¢ per mile |
| Charity work | 14¢ per mile | 14¢ per mile |
The January rates come from IRS Notice 2026-10. The July increase is Announcement 2026-11, published on July 13, 2026, because fuel prices had risen. The charitable rate is fixed by law, so it did not move.
For comparison, the business rate was 70 cents in 2025, 67 cents in 2024 and 65.5 cents in 2023. The last time the IRS changed the rate mid-year was 2022 (58.5 cents, then 62.5 cents).
How to work out your 2026 deduction
Total the business miles in each half of the year separately, then multiply each by its own rate.
| Period | Business miles | Rate | Amount |
|---|---|---|---|
| Jan 1 – Jun 30 | 3,200 | $0.725 | $2,320.00 |
| Jul 1 – Dec 31 | 2,900 | $0.76 | $2,204.00 |
| 2026 total | 6,100 | $4,524.00 |
Using 76 cents for the whole year would overstate this example by $112. Using 72.5 cents throughout would leave $101.50 unclaimed. Business parking and tolls go on top of the mileage figure. Interest on a car loan is deductible on top too, but only for self-employed people.
Keep a log that splits at June 30
Your mileage log already holds the dates, so the split is mostly a matter of adding up two subtotals. The Mileage Log Generator builds a printable log in your browser. Put each trip on its own line, starting with the date, the route and the business purpose. Enter the miles and the rate (0.725 or 0.76), and it multiplies each line and totals the log.
Mileage Log GeneratorLog business vehicle travel, mileage deductions, reimbursement rates, and vehicle route totals.Make a mileage logFor 2026, the simplest approach is two logs: one for January to June at 0.725 and one for July to December at 0.76. Each total then matches one row of the table above. Nothing you type is uploaded.
The IRS’s record-keeping guidance (Publication 463) asks for:
- the date of each business trip
- where you went
- the business purpose
- the miles driven
- your total miles for the year, which is easiest to prove with odometer readings at the start and end of the year
Write trips down as they happen. A log rebuilt from memory in April is the kind auditors disallow.
Who can use the standard mileage rate
- Self-employed people and sole proprietors: freelancers, contractors, gig drivers. They claim on Schedule C.
- Business owners reimbursing staff, or claiming for a vehicle the business uses.
- Employees, for reimbursement: most W-2 employees cannot deduct unreimbursed mileage on their federal return, which has been the rule since 2018. An employer can reimburse you at up to the IRS rate tax-free under an accountable plan, so submit your log to payroll. The Expense Report Generator puts mileage beside your other claims.
A few rules decide whether the rate is open to you at all:
- For a car you own, you must use the standard rate in the first year you use it for business. After that, you can switch between the standard rate and actual costs from year to year.
- For a leased car, if you choose the standard rate, you must keep using it for the whole lease.
- You cannot use it for five or more vehicles at the same time, such as a fleet.
What counts as business miles
| Counts | Does not count |
|---|---|
| Driving between two work sites in a day | Your commute from home to your regular workplace |
| Visiting clients, customers or suppliers | Personal errands on the way back |
| Trips to the bank or post office for the business | Driving you were reimbursed for at the full rate already |
| From a home office that is your main place of business to a client | Weekend trips with a token business stop |
Standard rate or actual expenses?
The alternative is adding up real costs: gas, insurance, repairs, registration and depreciation, multiplied by your business-use percentage. Actual expenses tend to win for expensive or heavy vehicles and for cars that are mostly used for business. The standard rate wins on simplicity and suits most small cars. Either way, you need the mileage log, because you need the business percentage.
Medical and charity miles
Medical miles at 20.5 or 23.5 cents count toward your itemized medical deduction. That only helps if your total medical costs are more than 7.5% of your adjusted gross income. Charity miles at 14 cents are for driving while volunteering for a qualified organization, and they are deductible only if you itemize.
This is general information, not tax advice. For your own return, check IRS.gov’s standard mileage rates page or ask a tax professional.
Tools used in this guide
Free, and they run in your browser — nothing is uploaded. See every tool on the Business Generators page.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business driving it is 72.5 cents a mile from January 1 to June 30, 2026, and 76 cents a mile from July 1 to December 31, 2026. The medical and military moving rate is 20.5 cents, then 23.5 cents. The charitable rate stays at 14 cents all year.
Why did the IRS change the mileage rate in the middle of 2026?
Fuel prices rose after the January rate was set. The IRS raised the rates for the second half of the year in Announcement 2026-11, published in Internal Revenue Bulletin 2026-29 on July 13, 2026. It last did this in 2022.
Does the IRS mileage rate include gas?
Yes. The standard rate covers fuel, oil, maintenance, repairs, tires, insurance, registration and depreciation. If you claim the rate, you cannot also deduct what you spent on gas. Business parking fees and tolls are the exception: you can add those on top.
Can I deduct mileage as a W-2 employee?
Generally not on your federal return. Unreimbursed employee travel has not been deductible for most employees since 2018. A few groups still can, such as Armed Forces reservists, qualified performing artists and fee-basis government officials. Otherwise, ask your employer to reimburse you.
Is a mileage reimbursement taxable?
Not if your employer pays it under an accountable plan, meaning you submit a log and return any excess, and the rate is no higher than the IRS rate. Amounts above the IRS rate, or a flat car allowance with no log, are treated as wages.
What records does the IRS want for mileage?
For each business trip: the date, where you went, the business purpose and the miles driven. Also record your total miles for the year, ideally from odometer readings on January 1 and December 31. Write it down at or near the time of the trip, not from memory at tax time.