IRS mileage rate 2026: 72.5¢, then 76¢ from July 1

The 2026 standard mileage rates

The IRS publishes the standard mileage rate each December for the coming year. For 2026, Notice 2026-10 set the business rate at 72.5¢, up 2.5¢ from 2025. Then, after a sharp rise in fuel prices, Announcement 2026-11 (issued July 13, 2026) raised the business and medical rates for travel on or after July 1.

For comparison, the business rate was 70¢ for all of 2025 and 67¢ for 2024.

How to calculate a split-year deduction

Multiply each period’s business miles by that period’s rate, then add the two together. If you drove 6,000 business miles before July and 5,500 after:

• 6,000 miles × $0.725 = $4,350
• 5,500 miles × $0.76 = $4,180
• Total 2026 deduction: $8,530

Applying 76¢ to the whole year would overstate that deduction by $210, and applying 72.5¢ to the whole year would leave $192.50 on the table. Our mileage deduction calculator does the split for you.

Parking fees and tolls for business trips are deductible on top of the standard rate. Gas, insurance, repairs, and depreciation are not; the rate already covers them.

Who can use the standard mileage rate

The standard rate is available to sole proprietors, freelancers, gig workers, and other self-employed people who use a car, van, pickup, or panel truck for business. A few rules apply:

• For a car you own, you generally must choose the standard rate in the first year you use it for business. After that you can switch between methods in later years, with limits on depreciation.
• For a leased car, if you choose the standard rate you must use it for the entire lease, including renewals.
• You can’t use it if you operate five or more vehicles at the same time, as in a fleet.
• W-2 employees generally can’t deduct unreimbursed mileage on their federal return under current law.

The alternative is the actual expense method: you add up gas, oil, repairs, insurance, registration, lease payments or depreciation, and multiply by your business-use percentage. It takes more record-keeping and tends to win only for expensive vehicles or low annual mileage.

The records that support the deduction

The IRS can disallow a mileage deduction that isn’t backed by records. For each business trip you should be able to show the date, where you went, the business purpose, and the miles. You also need your total miles for the year so business-use percentage can be checked. See what a mileage log needs for the details.