IRS Standard Mileage Rate 2026: Use the New July Rate Correctly

Quick answer: Use 72.5 cents per eligible business mile driven from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31. The medical and qualifying moving rate is 20.5 cents in the first half and 23.5 cents in the second half. Charitable mileage remains 14 cents for the full year.

2026 IRS mileage rates at a glance

The IRS first announced the January rates in Notice 2026-10. It then issued Announcement 2026-11 after fuel prices increased, revising the business, medical and moving rates for expenses paid or incurred on or after July 1. The charitable rate did not change because Congress fixes it in the tax code.

The rate applies to an eligible car, van, pickup or panel truck. It is available for gasoline, diesel, hybrid and fully electric vehicles; it is not an EV-only or gasoline-only allowance. The cents-per-mile figure is a simplified proxy for vehicle costs, not a promise that every driver actually spends that amount.

How to calculate a 2026 mileage deduction

Split the log at midnight on June 30. Multiply eligible first-half miles by the first rate, multiply eligible second-half miles by the revised rate, then add the results. Do not average the two rates or apply 76 cents to trips that occurred before July.

Example: A sole proprietor records 5,000 eligible business miles through June 30 and 7,000 from July 1 through December 31. The first portion is 5,000 × $0.725 = $3,625. The second is 7,000 × $0.76 = $5,320. The preliminary standard-mileage deduction is $8,945.

That $8,945 is a deduction, not an $8,945 tax credit. It generally reduces business income before the applicable federal income and self-employment tax calculations. The actual tax effect depends on the complete return. Use the Income Tax Calculator only as a planning estimate, not a substitute for the filed forms.

Who may use the business mileage rate?

Self-employed people and business owners

A sole proprietor, independent contractor or gig worker can generally use an eligible vehicle method for ordinary and necessary business transportation. Examples can include driving from a qualifying business location to meet a client, deliver products, visit a job site, obtain supplies or travel between work locations. Personal use must be excluded.

A business organized as a corporation or partnership has additional questions: who owns or leases the vehicle, whether the worker is reimbursed under an accountable plan, and how personal use is reported. The standard mileage rate can help determine a substantiated reimbursement, but the worker should not automatically duplicate that reimbursement as a personal deduction.

Employees face stricter rules

Most W-2 employees cannot deduct ordinary unreimbursed job mileage on their federal return. Narrow statutory exceptions may apply to certain Armed Forces reservists, qualified performing artists, fee-basis state or local government officials and workers claiming impairment-related work expenses. Eligible educators have separate rules for specified expenses. A company can still reimburse legitimate business travel under its policy even when the employee cannot claim a personal deduction.

Business travel versus nondeductible commuting

Ordinary travel from home to a regular workplace and back is generally commuting, even when you answer calls during the drive or carry work materials. Putting an advertisement on the car does not convert the commute into business mileage. Personal errands and family trips are also excluded.

Travel between one business location and another is generally different. So can travel to a qualifying temporary work location. If a home office qualifies as the taxpayer's principal place of business under federal rules, trips from that home office to another business location in the same trade or business may be business transportation. Merely working occasionally at a kitchen table does not automatically establish that treatment.

Document the business purpose, not just the odometer. “12 miles” says little. “July 18—office to client site for contract review—12 miles” provides the date, destination, relationship and purpose a reviewer can understand.

Standard mileage versus actual vehicle expenses

The optional rate is one method. An eligible taxpayer may instead allocate actual expenses such as gas, electricity, oil, repairs, insurance, registration, tires, lease payments or depreciation between business and personal use. The method producing the larger deduction is not necessarily the best method after administrative effort, depreciation rules and future flexibility are considered.

For a vehicle you own, the IRS generally requires choosing standard mileage in the first year it is available for business use if you want the ability to switch between eligible methods later. For a leased vehicle, choosing standard mileage generally commits the taxpayer to that method for the entire lease period, including renewals. Certain fleet use and depreciation choices can also make the standard rate unavailable.

Do not claim standard mileage and actual operating costs for the same vehicle and period. Business parking fees and tolls may generally be separately deductible when properly substantiated, but parking at a regular workplace is normally part of commuting. Financing decisions are also separate from mileage eligibility; compare the cash-flow effect with the Auto Loan Calculator.

Medical, moving and charitable mileage rules

Medical transportation

The medical rate can apply to transportation primarily for and essential to qualifying medical care. A federal medical-expense deduction generally requires itemizing and only counts eligible expenses above the applicable adjusted-gross-income threshold. The mileage rate does not transform an elective or personal trip into deductible medical transportation.

Moving transportation

The federal moving deduction remains limited. For 2026, it can apply to qualifying moves by active-duty members of the Armed Forces under a permanent-change-of-station order and, under newer law, certain members of the intelligence community. An ordinary civilian relocation for a new job does not become deductible merely because the move is work-related.

Charitable service

Eligible mileage driven in service of a qualified charitable organization remains 14 cents per mile for all of 2026. The trip must primarily serve the organization, not provide a substantial personal vacation or recreation benefit. Keep the organization, date, purpose and mileage, and verify that the organization and contribution rules qualify.

Build an audit-ready mileage log

The strongest record is made at or near the time of the trip. A paper log, calendar, spreadsheet or mileage app can work if it captures reliable facts. Record the date, starting point and destination, deductible purpose, miles driven and any separately claimed parking or tolls. Retain receipts and appointment, invoice or calendar evidence that supports the purpose.

Also record the vehicle's beginning- and end-of-year odometer readings, or another reliable measure of total annual mileage. Total miles help establish the business-use percentage when actual expenses or listed-property rules require it. If two vehicles are used, keep separate records rather than combining every trip in one undifferentiated total.

For the 2026 midyear change, preserve separate January–June and July–December subtotals. A mileage app should export trip dates, not only one annual count. Review categorization monthly so client trips are not mixed with commuting or personal errands.

2026 mileage checklist

• Confirm the driver, vehicle owner or lessee, business entity and reimbursement arrangement.
• Separate personal commuting from eligible business, medical, moving or charitable trips.
• Use 72.5¢ and 20.5¢ through June 30; use 76¢ and 23.5¢ beginning July 1.
• Keep charitable mileage at 14¢ for both periods.
• Compare standard mileage with the actual-expense method before making an irrevocable or long-lived choice.
• Retain a timely trip log and supporting business-purpose records.
• Reconcile reimbursements so the same expense is not deducted twice.

Official sources

• IRS Announcement 2026-11: revised rates effective July 1, 2026
• IRS: original 2026 standard mileage rates and method rules
• IRS standard mileage rate reference
• IRS Publication 463: travel, vehicle and recordkeeping rules

Frequently asked questions