The IRS sets standard mileage rates each year so taxpayers can deduct vehicle costs without tracking every fuel receipt. For 2026 there are two business rates rather than one: 72.5 cents per mile for miles driven January 1 through June 30, and 76 cents per mile for miles driven July 1 through December 31. IRS Notice 2026-10 published the original rate, and Announcement 2026-11 modified it in the middle of the year.
What Are the 2026 IRS Standard Mileage Rates?
There are two sets of 2026 rates, divided at July 1. IRS Notice 2026-10 published the rates that apply to the first half of the year, and Announcement 2026-11 (Internal Revenue Bulletin 2026-29) expressly modifies that notice for expenses paid or incurred on or after July 1, 2026.
- Business use: 72.5 cents per mile through June 30, then 76 cents per mile from July 1 (the 2025 rate was 70 cents)
- Medical and military moving under IRC Section 217(g): 20.5 cents per mile through June 30, then 23.5 cents per mile from July 1
- Charitable driving: 14 cents per mile for the whole year, fixed by statute under IRC Section 170(i) and never adjusted for inflation
The business and medical rates are set from an annual study of fixed and variable vehicle ownership and operating costs. Mid-year revisions are rare, and this is the first one since 2022. The charitable rate can only change if Congress amends the statute.
How Do You Claim Mileage When the Rate Changes Mid-Year?
Split your 2026 business miles into two buckets by trip date and apply the matching rate to each. Miles driven January 1 through June 30 are deducted at 72.5 cents, and miles driven July 1 through December 31 are deducted at 76 cents. Announcement 2026-11 applies to expenses paid or incurred on or after July 1, 2026, so the date of the trip controls, not the date you file the return.
Here is how the math works. A consultant drives 12,000 business miles in 2026, 5,000 of them before July 1 and 7,000 after:
- First half: 5,000 miles x $0.725 = $3,625
- Second half: 7,000 miles x $0.76 = $5,320
- Total mileage deduction: $8,945
Applying a single flat 72.5-cent rate to all 12,000 miles would produce $8,700 and understate the deduction by $245.
The practical consequence is that an annual odometer total is no longer enough support for a 2026 return. Your records have to show when each trip happened so the year can be separated at July 1. If your tracking app only reports an annual figure, pull a report covering January 1 through June 30 before the year closes.
Who Can Deduct Business Mileage in 2026?
The business rate applies to self-employed individuals, not employees:
- Self-employed individuals on Schedule C (freelancers, consultants, rideshare drivers)
- Real estate investors and landlords on Schedule E
- Farmers on Schedule F
- Single-member LLC owners treated as sole proprietors
Employees cannot deduct unreimbursed mileage. TCJA eliminated the employee business expense deduction for 2018 through 2025, and OBBBA made that elimination permanent. If you drive for work as a W-2 employee, ask your employer for reimbursement through an accountable plan instead.
Standard Mileage vs. Actual Expense Method
Two methods exist for deducting business vehicle costs. The method you choose in the first year you place a vehicle in business service generally locks in your approach for that vehicle.
Standard Mileage Method
Multiply business miles by the rate for the half of the year in which they were driven, 72.5 cents through June 30 and 76 cents from July 1. The rate covers fuel, depreciation, insurance, and repairs. You still deduct parking fees and tolls separately. Requires only a mileage log, not receipts for individual vehicle expenses. Best for high-mileage drivers with average-cost vehicles.
Actual Expense Method
Deduct actual costs of gas, insurance, repairs, registration, and depreciation (via MACRS or Section 179), multiplied by your business-use percentage. More documentation required, but often produces a larger deduction for expensive vehicles or vehicles with high operating costs relative to miles driven.
What Counts as a Business Mile?
Qualifying business miles include driving between two work locations, traveling to meet clients, visiting job sites, and going to business-related appointments. Commuting between home and your regular workplace is never deductible, even if you make work calls during the commute.
A useful rule: if you have a qualifying home office under IRC Section 280A, driving from home to a client's location is a business mile, not a commute.
Mileage Log Requirements
The IRS requires a contemporaneous log under Treasury Reg. Section 1.274-5T. Each entry must show:
- Date of the trip
- Business destination (address or city)
- Business purpose
- Miles driven
The date field carries extra weight for 2026, because it decides whether a trip is deducted at 72.5 cents or 76 cents.
Apps such as MileIQ and Everlance track mileage automatically via GPS and generate IRS-ready reports. Manual logs in a notebook or spreadsheet also work. Reconstructed logs created at year-end from memory carry higher audit risk.
Medical and Charitable Mileage
Medical mileage (20.5 cents/mile through June 30, 23.5 cents/mile from July 1): Deductible on Schedule A for driving to receive medical care, pick up prescriptions, or visit a provider. You must itemize deductions, and total medical expenses must exceed 7.5% of AGI before any benefit applies. Military moving mileage under IRC Section 217(g) uses these same rates.
Charitable mileage (14 cents/mile all year): Deductible on Schedule A when you drive to perform services for a qualifying 501(c)(3) organization. This rate does not change at July 1 because IRC Section 170(i) sets it by statute. You must itemize to claim this deduction.
Need help choosing the right vehicle deduction method or setting up a mileage tracking system? Contact TS CPA for a free consultation. We respond within the same day.