IRS Mileage Rate 2026: 72.5¢, Then 76¢ From July 1

Eyal Malka

By Eyal Malka, Founder of Milebook

November 9, 2026 · 5 min read · Fact-checked against 4 primary sources

All 2026 standard mileage rates

PurposeJan 1 – Jun 30, 2026Jul 1 – Dec 31, 2026
Business72.5¢76¢
Medical, and moving for qualifying military members20.5¢23.5¢
Charity (service to a charitable organization)14¢14¢

For comparison, the 2025 business rate was 70 cents a mile. The charity rate doesn't change with fuel prices: it's set by law at 14 cents. The moving rate only applies to certain active-duty members of the Armed Forces and, from 2026, certain members of the intelligence community moving under orders.

How to calculate your 2026 deduction

Because the rate changed on July 1, you need your business miles split into two halves of the year. Multiply each half by its rate and add them together.

That's why a dated mileage log matters more than ever this year: a single yearly total isn't enough to apply two rates. See what the IRS expects a mileage log to include.

What the rate covers, and what it doesn't

The standard rate is meant to cover the full cost of running the car: fuel, maintenance, repairs, tires, insurance, registration and depreciation. You can't deduct those separately on top of it. You can still deduct business parking fees and tolls on top of the standard rate (but not parking at your regular workplace, which counts as commuting).

Commuting between home and a regular place of work is never deductible business mileage, whichever method you use.

Who can use it

  • Self-employed people, freelancers and gig drivers deduct car expenses on Schedule C. See the mileage deduction for gig drivers.
  • Most W-2 employees can't deduct unreimbursed business mileage on their federal return. That deduction was suspended from 2018 and made permanent in 2025, with narrow exceptions such as Armed Forces reservists and some performing artists and government officials.
  • Employers often use the IRS rate as the reimbursement rate for employees who drive their own cars.

Instead of the standard rate, you can deduct your actual car expenses. There are rules about when you can switch between the two. Here's how to choose.

Past business rates

PeriodBusiness rate
July 1 – Dec 31, 202676¢
Jan 1 – June 30, 202672.5¢
202570¢
202467¢

Track it without the math

Milebook logs each trip with its date, purpose and distance. On the Pro plan, reports total your business miles for any date range and estimate the deduction using the IRS rate in force on each trip's date, so the July 1 change is handled for you. Export everything to a spreadsheet for your tax preparer. Learn more about Milebook as a mileage tracker for taxes.

This article is general information, not tax advice. Rules depend on your situation; check with a tax professional, and always confirm current rates on irs.gov.

Track it without a spreadsheet

Milebook logs fuel, expenses, service and trips for every vehicle. Free for 2 vehicles, no card.

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Eyal Malka

About the author

Eyal Malka, Founder of Milebook

Eyal Malka is the founder of Milebook. For more than a decade he has run a home-service business in New York City, with work vans and trucks on the road every day. He tracks fuel, repairs and business mileage for those vehicles himself and claims the mileage deduction every year. Milebook started as the tool he wanted for his own vehicles: one place to see what each one really costs, and a mileage log that's ready at tax time.

More about Eyal · How we write and fact-check

Sources

  1. IRS: Standard mileage rates (all years)
  2. IRS news release IR-2025-128: 2026 business rate set at 72.5 cents (Notice 2026-10)
  3. Internal Revenue Bulletin 2026-29 (Announcement 2026-11, rates from July 1, 2026)
  4. IRS Topic 510: Business use of car