IRS Mileage Rate 2026: 72.5¢/Mile (Jan-Jun), 76¢/Mile (Jul-Dec) — Deduction Calculator and All 3 Rates

The IRS standard mileage rate lets you deduct a set amount per mile driven for business, medical, or charitable purposes. For 2026, the business rate isn’t flat — it changed mid-year. It started at 72.5 cents per mile for trips from January 1 through June 30, 2026, then the IRS raised it to 76 cents per mile for trips from July 1 through December 31, 2026, citing rising fuel costs (Announcement 2026-11). This kind of mid-year adjustment is rare — the last one was in 2022.

Quick answer: 2026 business mileage: 72.5¢/mile (Jan 1–Jun 30) then 76¢/mile (Jul 1–Dec 31). Medical/moving: 20.5¢/mile (Jan-Jun) then 23.5¢/mile (Jul-Dec). Charity: 14¢/mile, flat all year. Track every deductible mile with date, destination, purpose — and which half of the year it falls in.

Mileage Deduction Calculator

2026 IRS Standard Mileage Rates

The business, medical, and moving rates are adjusted based on fuel costs and vehicle operating expenses — normally just once a year, but the IRS made a mid-year adjustment for the second half of 2026 due to rising gas prices. The charity rate is set by statute and essentially never changes.

If you drove for business throughout 2026, you need to split your mileage log into two periods — miles driven January 1 through June 30 use the 72.5¢ rate, and miles driven July 1 through December 31 use the 76¢ rate.

Historical IRS Mileage Rates (Business)

Who Can Deduct Mileage?

Business Mileage (72.5¢/mile Jan-Jun, 76¢/mile Jul-Dec 2026)

Important: W-2 employees cannot deduct mileage on their personal tax returns since the Tax Cuts and Jobs Act of 2017 eliminated unreimbursed employee expenses. If your employer reimburses mileage, it’s tax-free up to the applicable IRS rate for the period the trip occurred.

Medical Mileage (20.5¢/mile Jan-Jun, 23.5¢/mile Jul-Dec 2026)

Medical mileage is an itemized deduction. You can only deduct total medical expenses exceeding 7.5% of your AGI.

Moving Mileage (20.5¢/mile Jan-Jun, 23.5¢/mile Jul-Dec 2026)

Only active-duty military members can deduct moving expenses. You must move due to a military order requiring a permanent change of station.

Charitable Mileage (14¢/mile, flat all year)

Charitable mileage is an itemized deduction on Schedule A.

What Miles Are Deductible?

Business Miles — YES

Business Miles — NO

Home Office Exception

If you have a qualifying home office, your home is considered your principal place of business. Driving from home to any business location (client site, co-working space, etc.) becomes deductible.

Calculating Your Mileage Deduction

Examples below use the 72.5¢ first-half-2026 rate. If your trips occurred after July 1, 2026, use 76¢ instead — or split your calculation across both rate periods if your driving spans the full year.

Example 1: Freelance Graphic Designer (H1 2026 miles)

Example 2: Uber/Lyft Driver (full year, split rate)

Example 3: Real Estate Agent (H1 2026 miles)

Standard Mileage vs. Actual Expenses

You have two methods for deducting vehicle expenses:

Standard Mileage Rate

Multiply deductible miles by the applicable IRS rate for the period driven (72.5¢ for Jan-Jun 2026, 76¢ for Jul-Dec 2026).

Includes: Gas, oil, repairs, insurance, registration, depreciation

Doesn’t include (deduct separately):

• Parking fees for business
• Tolls for business travel
• Interest on car loan (business use portion)
• Personal property tax on the vehicle

Actual Expense Method

Track all vehicle costs and multiply by business use percentage.

Which Method Is Better?

Rule of thumb: Calculate both methods in year 1 and use whichever is higher. If you want flexibility, start with standard mileage.

How to Track Mileage

The IRS requires contemporaneous records — documentation created at or near the time of the trip.

Required Information

For each trip, record:

2026-specific tip: Because the rate changed mid-year, your mileage log (or app) should let you separate trips before and after July 1, 2026, so you apply the correct rate to each.

Tracking Methods

Best Mileage Tracking Apps

Confirm current pricing directly with each provider, as subscription costs change periodically.

Mileage Reimbursement for Employees

If your employer reimburses mileage:

Accountable Plan Requirements

For reimbursements to be tax-free, the employer must have an accountable plan:

1. Expense must have a business connection
2. Employee must adequately account for expenses (within 60 days)
3. Employee must return excess reimbursement (within 120 days)

Common Mileage Deduction Mistakes

Mileage Deduction for Electric Vehicles

Electric vehicles qualify for the standard mileage rate, using the same 72.5¢/76¢ split-year rates as gas vehicles. The rate accounts for:

• Electricity costs (instead of gas)
• Battery depreciation
• Maintenance
• Insurance

EVs often have lower actual expenses than gas vehicles, making the standard mileage rate particularly attractive.

EV vs. Gas Vehicle Comparison (Illustrative)

At 12,000 business miles driven entirely in the first half of 2026: Standard rate = 12,000 × 72.5¢ = $8,700. For EVs, the standard mileage rate often results in a higher deduction than actual expenses.

2026 Mileage Deduction Limits

State Tax Treatment of Mileage Deductions

Most states that have an income tax allow self-employed taxpayers to deduct business mileage, but the rules vary. Some states fully conform to federal treatment; others have their own rates or restrictions.

Key rule for employees: Most states followed the federal change from the Tax Cuts and Jobs Act, meaning W-2 employees cannot deduct unreimbursed mileage on their state returns either. Self-employed workers retain the deduction in virtually every state with an income tax.

Self-employed tip: If you file in a state with an income tax, your Schedule C mileage deduction flows directly into your state return. There is no separate state form required in most states — the deduction carries over automatically from your federal Schedule C.

Bottom Line

• 2026 business mileage rate: 72.5¢/mile (Jan 1–Jun 30), rising to 76¢/mile (Jul 1–Dec 31) — a rare mid-year increase
• Track every trip with date, destination, purpose, miles, and which rate period it falls in
• W-2 employees cannot deduct mileage (but can receive tax-free reimbursement)
• Self-employed: Deduct on Schedule C
• Compare methods — standard vs. actual expenses — to maximize deduction
• Parking and tolls are deductible separately with either method
• Use an app for easy, IRS-compliant tracking

Sources

• Internal Revenue Service. “IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents per Mile, Up 2.5 Cents.” irs.gov
• Internal Revenue Service. “Standard Mileage Rates.” irs.gov/tax-professionals/standard-mileage-rates
• Internal Revenue Service. “Topic No. 510, Business Use of Car.” irs.gov/taxtopics/tc510

Vehicle deductions are one component of your total Schedule C deductions — the full list also includes home office, equipment, professional fees, software, and more. If you claim vehicle and home office expenses together, the home office deduction guide covers both the simplified and regular calculation methods. For an overview of all available business tax write-offs in one place, see business tax deductions.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.