The 2026 IRS mileage rate

The short answer

For business driving in 2026, the IRS standard mileage rate is 72.5¢ a mile for drives from January 1 to June 30, and 76¢ a mile for drives from July 1 to December 31.

Why there are two rates this year

The IRS normally sets the rate once, in December, for the whole of the next year. In 2026 it also raised the rates for the second half of the year because fuel prices had gone up. It last did this in 2022. The charity rate is set by law, so it stayed at 14¢.

How to work out your deduction

Each drive uses the rate for the day you drove it. You don't average them, and you don't use the higher rate for the whole year.

Say you drove 4,000 business miles in the first half of the year and 4,500 in the second:

• 4,000 miles × 72.5¢ = $2,900
• 4,500 miles × 76¢ = $3,420
• Deduction: $6,320

Using 72.5¢ for every mile would give $6,162.50, and leave $157.50 of deduction behind. That's why your log needs a date on every drive.

Who can use it

The business rate is for people who drive their own car for their own work: the self-employed, freelancers, gig and delivery drivers, and small business owners. It goes on Schedule C with the rest of your business expenses.

If you're an employee on a W-2, you generally can't deduct driving your employer doesn't pay you back for. That deduction ended in 2018 and is now gone for good, apart from a few groups such as Armed Forces reservists. Many employers reimburse at the IRS rate instead, and they still need a log from you.

The rules that come with it

• Pick it in the first year. If you own the car, choose the standard rate in the first year you use it for business. You can switch to actual costs later, but not always back again.
• A leased car stays on it. Choose the standard rate for a leased car and you use it for the whole lease.
• Not for fleets. You can't use it if you run five or more cars for business at the same time.
• Parking and tolls are extra. Business parking and tolls are deductible on top of the rate.
• It replaces the rest. Gas, repairs, insurance, registration and depreciation are all built into the rate, so you can't claim them as well.

What MileLock does with it

MileLock dates every drive it records and values each one at the rate for that day, so a June drive counts at 72.5¢ and a July drive at 76¢. The total on the Summary screen and in your exported log already adds them up correctly. See what else the IRS wants in a log.

Sources

• IRS: Standard mileage rates
• IRS Publication 463: Travel, Gift, and Car Expenses

This guide explains the IRS rules in plain English. It isn't tax advice; for your own situation, ask a tax professional.

More guides

• What the IRS wants in a mileage log
• Which drives count as business miles