IRS mileage rate 2026: 76 cents from July 1

The rates

In cents per mile, from the IRS.

The IRS announced the first-half rates in IR-2025-128 and the July change in IR-2026-29. The last time it changed rates mid-year was 2022, when the business rate went from 58.5 to 62.5 cents on July 1.

Two rates in one year

Date every trip.

Because the rate changed on July 1, a 2026 total has to be split. A consultant who drove 5,200 business miles from January through June and 4,800 from July through December figures $3,770 (5,200 × $0.725) plus $3,648 (4,800 × $0.76): $7,418. Applying either rate to all 10,000 miles would be off by $168 or $182. Mileage apps and spreadsheets that apply one rate to a whole year need to be checked.

Who uses which rate

Business, medical, charity, and the military.

• Business: self-employed people, on Schedule C or Schedule F. Employees generally cannot deduct unreimbursed car expenses on their federal return; Tax Topic 510 limits Form 2106 to Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials. Many employers reimburse at the IRS rate, but that is a company policy, not a tax rule.
• Medical: driving primarily for and essential to medical care counts as a medical expense, along with tolls and parking. Medical expenses are deductible only if you itemize and only above 7.5% of adjusted gross income.
• Moving: the IRS lists the moving rate as military only.
• Charity: miles driven while volunteering for a qualified charity, deducted as a charitable contribution.

Standard rate or actual expenses

The first year decides your options.

Instead of the standard rate, a business driver can deduct the business share of actual costs: gas, oil, repairs, tires, insurance, registration, licenses, and depreciation or lease payments. Tax Topic 510 sets the conditions. To use the standard rate for a car you own, you must choose it in the first year the car is used in your business; later you can switch between methods. For a leased car, choosing the standard rate commits you to it for the whole lease. Fleets of five or more cars and cars with accelerated depreciation or a Section 179 deduction cannot use it. Parking fees and tolls for business trips are deductible under either method.

Keep a log

Date, destination, purpose, and miles.

The law requires adequate records or sufficient evidence to support a deduction. A log kept at the time — the date, where you went, and the business purpose and miles — is the usual evidence, and in 2026 the date also decides the rate. To compare the standard rate with what fuel alone cost on a trip, use the fuel cost calculator, and see how to improve gas mileage for what drives that number.