IRS standard mileage rates for 2026
The IRS raised the 2026 rates in the middle of the year because of rising fuel costs. Use the rate for the date each trip was made:
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 | 2025 |
|---|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile | 70¢ per mile |
| Medical and moving* | 20.5¢ | 23.5¢ | 21¢ |
| Charitable | 14¢ | 14¢ | 14¢ |
*Moving mileage applies only to eligible members of the Armed Forces on active duty and certain intelligence-community members. The charitable rate is set by law and does not change mid-year. Sources: IRS Notice 2026-10; mid-year change in IRS Announcement 2026-11, reported by the Journal of Accountancy.
If you drove in both halves of 2026, run the calculator twice – once for January–June miles and once for July–December miles – and add the results.
How the mileage deduction works
Deduction = business miles × standard rate + business parking and tolls. The standard rate is meant to cover fuel, maintenance, insurance and depreciation, so you can't also deduct those car costs. The alternative is the actual-expense method, where you deduct the business share of real car costs; you generally have to choose the standard rate in the first year a car is used for business to be able to use it later.
Keep a mileage log
The IRS expects a record made at or near the time of each trip: the date, destination, business purpose and miles driven (or start and end odometer readings). A notes app, spreadsheet or mileage-tracking app all work. Commuting from home to a regular workplace is not deductible business mileage.
Billing mileage to clients
Many contractors and freelancers pass travel costs on to clients. Agree the rate in advance – the IRS business rate is a common benchmark – then add a line such as "Travel: 120 miles × $0.76" to your invoice. The invoice generator handles this as an ordinary line item, and the self-employment tax calculator shows how deductions like mileage lower your tax bill.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business driving it is 72.5 cents per mile from January 1 to June 30, 2026 and 76 cents per mile from July 1 to December 31, 2026. Medical and moving are 20.5 and 23.5 cents for the same periods; charitable is 14 cents all year.
Can employees deduct mileage?
Generally no, for federal tax: unreimbursed employee business expenses are not deductible for most employees under current law. Employees are usually reimbursed by their employer instead. Self-employed people deduct mileage on Schedule C.
Is mileage reimbursement taxable income?
Reimbursement at or below the IRS rate under an accountable plan (with a mileage log) is generally not taxable to the employee. Amounts above the rate or without records may be treated as wages.
Can I use the standard rate and also deduct gas?
No. The standard rate already includes fuel, maintenance, insurance and depreciation. You can add business parking fees and tolls on top.
