The IRS has set the 2026 standard mileage rate at 72.5 cents per mile for business use. This is the rate you multiply by your total business miles to calculate your mileage deduction on your tax return. If you drive for work, this number directly affects how much money you save.
Here is everything you need to know about the 2026 IRS mileage rate, including the other two rates, what changed from 2025, how to use the rate, and a full history table.
The Three 2026 IRS Mileage Rates
The IRS publishes three separate standard mileage rates each year. Each one covers a different type of driving.
Business Mileage: 72.5 Cents Per Mile
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 in 2026, you can deduct 72.5 cents from your taxable income. Drive 15,000 business miles and your deduction is $10,875.
Medical and Moving Mileage: 21 Cents Per Mile
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.
Charitable Mileage: 14 Cents Per Mile
When you drive for a qualified charitable organization, you can deduct 14 cents per mile. Unlike the other two rates, this one is set by Congress and has not changed in years.
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 From 2025 to 2026
The business rate increased by 2 cents per mile, from 70 cents in 2025 to 72.5 cents in 2026. The medical/moving rate went up by half a cent, from 20.5 cents to 21 cents. The charitable rate stayed at 14 cents.
These increases reflect rising costs of vehicle ownership, particularly insurance premiums and maintenance costs that continued to climb through 2025.
| Rate Type | 2025 | 2026 | Change |
|---|---|---|---|
| Business | 70.0¢/mi | 72.5¢/mi | +2.5¢ |
| Medical/Moving | 20.5¢/mi | 21¢/mi | +0.5¢ |
| Charitable | 14¢/mi | 14¢/mi | No change |
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¢ | Current rate |
The 2022 mid-year adjustment was unusual. The IRS typically sets the rate once per year in December for the following January. Gas prices above $5 per gallon prompted the rare mid-year correction.
How to Calculate Your 2026 Mileage Deduction
The math is straightforward. Multiply your total qualifying business miles by 72.5 cents.
Example: You drive 12,000 business miles in 2026.
12,000 miles x $0.725 = $8,700 deduction
If you are in the 22% tax bracket, that $8,700 deduction saves you $1,914 in federal income tax. Add self-employment tax savings and the real benefit is even higher.
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 count of your business miles. Multiply by 72.5 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 2026 rate take effect? January 1, 2026. Use the 2025 rate (70 cents) for any business miles driven in December 2025 or earlier.
Start Tracking Every Mile
At 72.5 cents per mile, every untracked business trip is money left on the table. A 10-mile round trip to a client is worth $7.25. Five of those per week adds up to nearly $1,900 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.
