The IRS raised the standard business mileage rate to 76 cents per mile effective July 1, 2026. That is the rate in force right now. Miles you drove earlier in the year, from January 1 through June 30, 2026, stay at the original 72.5 cents per mile.
This is a mid-year change, and it means 2026 is a split year. When you file, you will need two mileage totals, not one. Here is everything you need to know: both rate periods, the medical and charitable rates, how to split a year you tracked as a single block, and the full history table.
The 2026 Rates at a Glance
The IRS publishes three separate standard mileage rates. Two of them changed on July 1, 2026. The third did not move at all.
| Rate Type | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢/mi | 76¢/mi |
| Medical / Military moving | 20.5¢/mi | 23.5¢/mi |
| Charitable | 14¢/mi | 14¢/mi |
Source: IRS Standard Mileage Rates.
Business Mileage: 76 Cents Per Mile (72.5 Cents Before July 1)
This is the rate most people care about. It applies to self-employed individuals deducting business miles on Schedule C, as well as Armed Forces reservists and certain state or local government officials.
For every business mile you drive from July 1, 2026 onward, you can deduct 76 cents from your taxable income. Drive 15,000 business miles in the second half of the year and your deduction is $11,400. The same 15,000 miles driven between January and June are worth 72.5 cents each, or $10,875.
Medical and Military Moving Mileage: 23.5 Cents Per Mile (20.5 Cents Before July 1)
This rate covers driving for medical care (trips to doctors, hospitals, pharmacies) and qualifying military moves. The moving deduction is currently limited to active-duty military members who relocate under orders. It followed the business rate upward on July 1, from 20.5 cents to 23.5 cents. If you are relocating this year, our guide to the moving mileage deduction and who still qualifies explains the permanent-change-of-station test and how to report the miles on Form 3903.
Charitable Mileage: 14 Cents Per Mile, Unchanged
When you drive for a qualified charitable organization, you can deduct 14 cents per mile. This rate did not change on July 1 and has not changed for decades. Unlike the other two rates, it is fixed by statute rather than adjusted by the IRS for vehicle operating costs, so mid-year corrections never touch it. Claiming it also works differently from a business deduction: see our guide to claiming charitable mileage for volunteer driving on Schedule A for which organizations count and which volunteer trips do not.
Since the Tax Cuts and Jobs Act of 2017, W-2 employees can no longer deduct unreimbursed business mileage on federal taxes. If your employer does not reimburse you, the deduction is only available to self-employed filers. Some states still allow the deduction at the state level.
What Changed, and When
Two things changed in 2026. The rate moved once in January, as it does every year, and then again on July 1, which almost never happens.
| Rate Type | 2025 | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|---|
| Business | 70.0¢/mi | 72.5¢/mi (+2.5¢) | 76¢/mi (+3.5¢) |
| Medical / Military moving | 21¢/mi | 20.5¢/mi (−0.5¢) | 23.5¢/mi (+3¢) |
| Charitable | 14¢/mi | 14¢/mi | 14¢/mi (no change) |
The January increase was the routine annual adjustment. The July increase was a mid-year correction, the kind the IRS makes only when vehicle operating costs move sharply enough during the year that the January figure no longer reflects what drivers are actually paying.
Because the mid-year correction resets the baseline the IRS carries into its next announcement, budgeting for the year ahead is less predictable than usual. Our IRS mileage rate 2027 forecast works through the fuel, insurance, and depreciation trends that will shape the next figure, and when to expect it.
What the Mid-Year Change Means If You Tracked All Year
If you have been logging business miles since January, you cannot simply multiply your annual total by one rate. You need to split your miles at June 30.
The wrong way: 20,000 miles x $0.76 = $15,200. This overstates your deduction, because the first half of the year was never worth 76 cents per mile.
The right way: separate the log by trip date.
- 9,000 miles driven Jan 1 – Jun 30 x $0.725 = $6,525
- 11,000 miles driven Jul 1 – Dec 31 x $0.76 = $8,360
- Total deduction: $14,885
This is why trip-level dates matter more in 2026 than in a normal year. A log that records only a monthly or annual mileage total cannot be split correctly, and a running odometer figure with no dates attached gives you nothing to work with. If your records are date-stamped per trip, the split takes a minute. If they are not, you are estimating, and estimates are exactly what the IRS challenges.
Tripbook stamps every trip with its date automatically, so filtering the year into a January–June block and a July–December block is a matter of setting a date range on the report.
Historical IRS Mileage Rates
The standard mileage rate has trended steadily upward over the past several years, reflecting the rising cost of owning and operating a vehicle.
| Year | Business Rate | Notable Change |
|---|---|---|
| 2020 | 57.5¢ | Pre-pandemic baseline |
| 2021 | 56¢ | Slight decrease due to low gas prices |
| 2022 | 58.5¢ / 62.5¢ | Rare mid-year increase (July 1) due to gas spike |
| 2023 | 65.5¢ | Largest single-year jump in a decade |
| 2024 | 67¢ | Steady increase |
| 2025 | 70¢ | Crossed the 70-cent mark |
| 2026 | 72.5¢ / 76¢ | Mid-year increase (July 1); 76¢ is the current rate |
The 2022 mid-year adjustment was the last time this happened before 2026. The IRS typically sets the rate once per year in December for the following January, and only revisits it mid-year when operating costs move far enough to make the January figure unrealistic.
How to Calculate Your 2026 Mileage Deduction
Multiply the miles you drove in each period by that period’s rate, then add the two results together.
Example: You drive 12,000 business miles across 2026, split 5,000 in the first half and 7,000 in the second half.
- 5,000 miles x $0.725 = $3,625
- 7,000 miles x $0.76 = $5,320
- Total deduction: $8,945
If you are in the 22% tax bracket, that $8,945 deduction saves you $1,967.90 in federal income tax. Add self-employment tax savings and the real benefit is even higher.
If all 12,000 of those miles had fallen after July 1, the deduction would be $9,120. If they had all fallen before July 1, it would be $8,700. Where your miles land in the year now changes the answer.
Use our mileage reimbursement calculator to run the numbers for your specific situation.
Standard Mileage Rate vs. Actual Expenses
You have two options for deducting vehicle expenses on your taxes: the standard mileage rate or the actual expense method.
Standard mileage rate is simpler. You just need an accurate, date-stamped count of your business miles. Multiply the pre-July miles by 72.5 cents, the post-July miles by 76 cents, and you have your deduction.
Actual expenses requires you to track every vehicle cost: gas, oil changes, tires, insurance, depreciation, lease payments, registration, and repairs. You then deduct the business-use percentage of the total.
Most self-employed individuals choose the standard rate because it is easier to track and often results in a comparable or larger deduction. However, if you drive an expensive vehicle or have unusually high maintenance costs, the actual expense method might save you more. Read our detailed comparison of standard mileage rate vs. actual expenses to decide which method works best for you.
If you want to use the standard mileage rate, you must choose it in the first year you use your car for business. After that, you can switch between methods each year. If you start with actual expenses, you are locked out of the standard rate for that vehicle.
What Counts as a Business Mile
Not every work-related trip qualifies. The IRS has specific rules about what counts as deductible business mileage:
Qualifies as business mileage:
- Driving from one work location to another
- Trips to meet clients, attend conferences, or visit job sites
- Driving to the bank, post office, or supply store for business errands
- Trips from a qualifying home office to any work destination
Does not qualify:
- Your regular commute from home to your primary workplace
- Personal errands, even if done during a work day
- Driving to lunch (unless the meal is a business meeting)
Understanding the difference between business miles and commuting miles is essential to avoiding issues with the IRS.
How to Track Your Miles for the IRS
The IRS requires a contemporaneous log of your business mileage. That means you need to record your miles at or near the time of each trip, not reconstruct them from memory at tax time.
Your log should include:
- Date of the trip
- Starting point and destination
- Business purpose
- Miles driven
You can keep this log on paper, in a spreadsheet, or with a mileage tracking app. An app like Tripbook automates the entire process by using GPS to detect and record your drives in real-time. You classify each trip with a swipe, and the app generates IRS-compliant reports you can export directly.
For a complete breakdown of what the IRS expects, read our guide on IRS mileage log requirements.
Frequently Asked Questions
Can I deduct mileage if I work from home? Yes. If you have a qualifying home office, trips from your home to clients, meetings, and business destinations count as deductible business miles.
Does the rate apply to electric vehicles? Yes. The standard mileage rate applies regardless of whether your vehicle runs on gas, diesel, or electricity.
Can I use the standard rate for more than one vehicle? Yes, but you must track mileage separately for each vehicle.
When does the 76-cent rate take effect? July 1, 2026. Use 72.5 cents for business miles driven January 1 through June 30, 2026, and the 2025 rate of 70 cents for anything driven in December 2025 or earlier.
Do I have to use both rates on one tax return? Yes, if you drove business miles in both halves of 2026. The IRS expects the deduction to reflect the rate in force on the date of each trip, so a single blended figure is not correct.
Which rate applies to a trip that started in June and ended in July? Use the date the trip took place. For an overnight or multi-day drive that crosses June 30, split the miles by the day they were actually driven.
Start Tracking Every Mile
At 76 cents per mile, every untracked business trip is money left on the table. A 10-mile round trip to a client is worth $7.60. Five of those per week adds up to nearly $2,000 per year.
The easiest way to make sure you never miss a deduction is to automate your tracking. Download Tripbook on the App Store and let GPS do the work while you focus on driving.
