2026 IRS standard mileage rates
For 2026 the IRS set the business standard mileage rate at 72.5 cents per mile from January 1, then raised it to 76 cents per mile for miles driven from July 1 through December 31, 2026. The rate covers the whole cost of running the vehicle: fuel, oil, maintenance, tires, insurance, registration and depreciation. That is why the calculator asks for miles in each half of the year separately.
| Use | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile |
| Medical and military moving | 20.5¢ | 23.5¢ |
| Charitable | 14¢ | 14¢ |
Deduction = miles Jan–Jun × $0.725 + miles Jul–Dec × $0.76 + business parking and tolls
Parking fees and tolls for business trips are deductible on top of the standard rate. Interest on a car loan is deductible in proportion to business use for self-employed people; parking at your regular workplace and traffic tickets are not.
Which miles count
- Count: driving between clients or job sites, to a temporary work location, to the bank, post office or a supplier for the business, and, for gig drivers, the miles driven while working for the app, including driving to a pickup.
- Do not count: commuting from home to a regular office or shop, personal errands, and the trip home after your last delivery if you would have driven it anyway. If your home is your principal place of business, trips from home to other work locations are business miles.
Worked example
A self-employed home inspector drives 6,000 business miles in the first half of 2026 and 6,000 in the second half.
- First half: 6,000 × $0.725 = $4,350
- Second half: 6,000 × $0.76 = $4,560
- Mileage deduction: $8,910
With $50,000 of profit before car costs and filing single, the deduction lowers 2026 self-employment tax by about $1,258.94 and income tax by about $794.93, for a total saving of about $2,053.87. The saving is larger than many expect because the deduction lowers both taxes, but smaller than the bracket rate alone suggests, because a lower profit also shrinks the 20% QBI deduction.
Gig driver example
A full-time delivery and rideshare driver logs 12,000 app miles from January to June and 13,000 from July to December: 12,000 × 0.725 + 13,000 × 0.76 = $18,580. On $40,000 of earnings before car costs, that cuts federal tax by about $4,095.85. Many drivers' 1099-K forms show gross fares, so the mileage log is often the difference between owing thousands and owing little.
Standard rate or actual expenses
Instead of the standard rate, you can deduct the business share of actual costs: fuel, repairs, tires, insurance, registration, lease payments or depreciation. The actual method can win for an expensive or costly-to-run vehicle with modest mileage; the standard rate usually wins for high-mileage drivers of economical cars. Rules to know:
- For a car you own, you must choose the standard rate in the first year you use it for business if you want the option later; after that you can switch between methods year by year (with straight-line depreciation if you move to actual costs).
- For a leased car, if you use the standard rate you must keep it for the whole lease, including renewals.
- The standard rate cannot be used if you run five or more vehicles at the same time, as in a fleet.
Keep a mileage log
The IRS requires records made at or near the time of the trip: the date, the destination, the business purpose and the miles, plus the total miles for the year. Odometer readings at the start and end of the year help. A notebook in the glove box, a spreadsheet or a GPS app all work; what matters is that the log is kept as you go, not rebuilt from memory at tax time. Without it, the deduction can be denied in an audit.
Common mistakes
- Using one rate for the whole year. In 2026 miles from July on earn 76¢, not 72.5¢.
- Deducting gas on top of the standard rate. Fuel, oil and repairs are already included in the rate.
- Counting the commute. Home to a regular workplace is personal driving.
- W-2 employees claiming mileage. Since 2018, unreimbursed employee mileage has not been deductible on a federal return, and the 2025 tax law made that permanent; ask your employer for reimbursement instead.
Tax saved is estimated with 2026 federal rates, the standard deduction and the QBI deduction for a business without employees. State income tax savings come on top.
Frequently asked questions
What is the IRS mileage rate for 2026?
72.5 cents per business mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026. Medical and moving miles are 20.5 and 23.5 cents; charity miles are 14 cents.
How much is 10,000 business miles worth in 2026?
At 72.5 cents for miles before July and 76 cents after, 5,000 miles in each half is $3,625 + $3,800 = $7,425 of deduction.
How much tax does the mileage deduction save?
For a self-employed person, roughly 14% in self-employment tax plus a share of the income tax bracket rate. An $8,910 deduction on $50,000 of profit saves a single filer about $2,054 of federal tax in 2026.
Can I deduct gas and mileage?
No. The standard mileage rate already includes fuel. You choose either the standard rate or the actual costs of the vehicle, not both; parking and tolls can be added to either.
Do I need receipts for the mileage deduction?
You need a mileage log written at the time: date, destination, business purpose and miles for each trip. Keep receipts for parking and tolls.
Sources
- Internal Revenue Service. Standard mileage rates: 72.5¢ for January 1 – June 30, 2026 and 76¢ for July 1 – December 31, 2026.
- Internal Revenue Service. IR-2025-128: IRS sets 2026 business standard mileage rate at 72.5 cents per mile.
- Internal Revenue Service. Publication 463, Travel, Gift, and Car Expenses: business vs commuting miles, choosing a method, records.
- Internal Revenue Service. Publication 334, Tax Guide for Small Business.
Last reviewed 29 October 2026. Results are estimates; see our disclaimer.