What is the IRS mileage rate for 2026?

There are two rates for 2026 because the IRS raised it mid year. Business travel from 1 January to 30 June 2026 is 72.5 cents per mile. From 1 July to 31 December 2026 it is 76 cents per mile. You have to split your log at 30 June and apply each rate to the miles driven in that period.

Why did the rate change in the middle of the year?

The IRS raised the rate to 76 cents effective 1 July 2026 to reflect rising fuel costs during the year. Mid year adjustments are unusual but not unprecedented; the IRS did the same in 2022 and 2011 for the same reason.

Can I claim actual expenses instead of the mileage rate?

Yes. You can either use the standard mileage rate or deduct your actual vehicle costs including fuel, insurance, repairs and depreciation. You generally have to choose the standard rate in the first year you use the vehicle for business if you want the option to switch later. Most self employed people find the standard rate simpler and it often produces a larger deduction for a reliable, economical vehicle.

Does commuting count?

No. Driving from home to your regular place of work is commuting and is never deductible, however far it is. Driving between job sites, to clients, to pick up supplies, or to a temporary work location does count.

IRS mileage rate 2026

By Isaac Farris·Updated August 7, 2026·6 minute read

The IRS changed the business mileage rate partway through 2026, which catches a lot of self employed people out at tax time. There are two rates this year and you have to apply both.

The 2026 rates

1 January to 30 June 2026: 72.5 cents per business mile
1 July to 31 December 2026: 76 cents per business mile

Split your log at 30 June and apply each rate to the miles driven in that half. If you use one rate for the whole year you will either underclaim or overclaim.

What that is actually worth

The numbers are larger than most people expect once you add up a year. At the second half rate of 76 cents, 10,000 business miles is a deduction of 7,600 dollars. For anyone driving between job sites daily, this is frequently the single largest deduction on the return, and it is the one most often left partly unclaimed because the log is incomplete.

What counts as a business mile

The rule that trips people up is commuting. Driving from home to your regular place of work is never deductible, no matter how far it is. What does count:

Driving between job sites or client locations during the working day
Driving to a temporary work location, meaning one you expect to work at for a year or less
Trips to collect supplies, materials or equipment
Driving to meet a client, a supplier or an accountant
Trips to the bank or post office for business reasons

If you work from home and your home is your principal place of business, the picture changes: trips from home to a client then become business miles rather than commuting. That is worth discussing with an accountant, because it can substantially increase what you can claim.

The rate is not the hard part

Knowing the rate takes thirty seconds. Having a log that survives scrutiny is the actual work, and it is where deductions get lost. The IRS requires a record made at or near the time of the trip, with the date, where you went, why, and the distance. A log reconstructed in April from memory and calendar entries is exactly what auditors are trained to look for.

There is a full explanation of what the log has to contain in IRS mileage log requirements.

Keep the odometer readings too

People forget this one. IRS Publication 463 asks for your vehicle's odometer reading at the start and end of the tax year, and again whenever you start using a different vehicle for business. It takes ten seconds on 1 January and it supports every mile you claim.

My honest advice

Whatever you use to track this, the only thing that matters is that you record trips the day they happen. Paper works. A spreadsheet works. What does not work is intending to catch up at the weekend, because nobody does. That is the reason automatic tracking exists, and it is why I built one.

Sources

IRS standard mileage rates, the official page, updated as rates change
IRS announcement of the 72.5 cent rate for 2026
Journal of Accountancy on the mid year rise to 76 cents

This is general information, not tax advice. Rates and rules change and your situation may differ. Check with an accountant before filing.

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