Solvent
Estimate

What is the IRS mileage rate for 2026?

Nicolas StrautBy Nicolas StrautPublished 8 min read

Key takeaways

  • The 2026 IRS mileage rate for business driving is 72.5 cents a mile for trips from January 1 to June 30 and 76 cents a mile from July 1 to December 31, after the IRS raised it mid-year for fuel costs.1
  • You can use the IRS mileage rate if you're self-employed or own the business and drive your own car for it, and W-2 employees can't deduct unreimbursed mileage on their federal return, though an employer can still reimburse it at up to the rate.
  • To use the IRS mileage rate for 2026, split your business miles at June 30 and multiply each half by its own rate, because one rate for the whole year will misstate your deduction.
In this article

The IRS mileage rate is the amount per mile the IRS lets you deduct for driving your own car for business, medical, moving, or charity purposes instead of tracking what the car costs. For 2026 the business rate changed on July 1, so most drivers will use two rates on one return. This guide covers the 2026 rates, who can use them, and how to calculate the deduction.

What is the IRS standard mileage rate?

The IRS standard mileage rate is an optional, cents-per-mile figure the IRS publishes each year for the cost of operating a car, van, pickup, or panel truck. You multiply your qualifying miles by the rate, and the result is your deduction in place of adding up gas, insurance, repairs, and depreciation.2 For an employer, the same rate is the most it can reimburse per mile and still treat the payment as substantiated.

The IRS sets the business, medical, and moving rates from an annual study of the fixed and variable costs of driving, and the charity rate is set by law and does not change. For 2026, Notice 2026-10 set the January rates and Announcement 2026-11 changed them from July 1. Because the rate is optional, you can deduct your actual car costs instead.

2026 IRS mileage rates for business, medical, and charity driving

The 2026 IRS mileage rates for business, medical, and charity driving are set for two periods, because the IRS raised the business and medical rates on July 1.

Scroll horizontally to see more columns.
Type of drivingJanuary 1 to June 30, 2026July 1 to December 31, 20262025
Business72.5 cents76 cents70 cents
Medical20.5 cents23.5 cents21 cents
Moving (active-duty military and certain intelligence community members only)20.5 cents23.5 cents21 cents
Charity14 cents14 cents14 cents

The rates apply to gas, diesel, hybrid, and fully electric cars alike.

Who can use the IRS mileage rate?

You can use the IRS mileage rate if you drive your own or leased car for business as a self-employed worker or owner, or for medical care, a qualifying military move, or charity work.

Self-employed workers and business owners

Self-employed workers and business owners can use the IRS mileage rate for business miles, and the deduction lowers the profit on Schedule C. That covers freelancers, 1099 contractors, single-member LLC owners, and gig drivers, and the DoorDash taxes guide shows how it works for a delivery driver.

What counts as a business mile, how commuting is treated, and what your log needs to show are covered in the mileage deduction guide.

W-2 employees

W-2 employees can't use the IRS mileage rate to deduct unreimbursed work driving on a 2026 federal return, because the One Big Beautiful Bill Act made the ban on miscellaneous itemized deductions permanent. Notice 2026-10 names the exceptions: Armed Forces reservists, fee-basis state or local government officials, certain performing artists, and eligible educators.

If you drive for your W-2 job, ask your employer to reimburse you at up to the IRS rate. A reimbursement at or below the rate counts as substantiated, so it isn't taxed as wages.

Medical, moving, and charity drivers

Medical, moving, and charity drivers use their own lower rates, and each comes with a narrower rule. Medical miles count as a medical expense on Schedule A if you itemize, and only the part of your medical expenses above 7.5% of your adjusted gross income is deductible.

Moving miles apply only to active-duty military members moving under orders and, from 2026, certain intelligence community members. Charity miles are driving you do for a qualified charity, at a rate of 14 cents a mile fixed by law in IRC §170(i).

What does the IRS mileage rate include?

The IRS mileage rate includes gas, oil, repairs, tires, insurance, registration, and depreciation, so you can't deduct any of those separately for a car you claim at the standard rate.

Part of the rate is depreciation: 35 cents of each 2026 business mile, up from 33 cents in 2025. That amount reduces your car's basis, which matters when you sell the car or switch to actual costs.

Business parking fees and tolls sit outside the rate, so you deduct them separately on top of your mileage. Keep parking and toll receipts separate from your mileage log.

3 differences between the standard mileage rate and actual expenses

The 3 differences between the standard mileage rate and actual expenses are what you add up, what records you keep, and whether you can switch methods later.

Scroll horizontally to see more columns.
DifferenceStandard mileage rateActual expenses
What you add upBusiness miles × the rate for the periodThe business share of gas, insurance, repairs, registration, lease payments, and depreciation
Records you keepMiles, dates, and business purpose for each tripEvery receipt, plus the same mileage log to set the business share
Switching laterFor a car you own, choose the rate in the first year the car is used for business, and you can switch either way in later years3Accelerated depreciation in the first year rules out the standard rate for that car

Which method pays more for a given car is covered in the mileage deduction guide.

What changed in the IRS mileage rate for 2026?

The IRS mileage rate for 2026 changed twice: it rose 3 cents to 72.5 cents on January 1, then rose again to 76 cents on July 1 because of higher fuel prices.

Scroll horizontally to see more columns.
DateBusiness rateMedical and moving rateIRS document
January 1, 202570 cents21 centsNotice 2025-5
January 1, 202672.5 cents20.5 centsNotice 2026-10, announced December 29, 2025
July 1, 202676 cents23.5 centsAnnouncement 2026-11, published July 13, 2026

The rate is set by the date you drive, which Announcement 2026-11 calls the date the expense is "paid or incurred." It isn't the date you file or the date a client pays you. Miles driven before July 1 take the first rate, and miles from July 1 on take the second.

If your log has no dates, rebuild the split from calendars, invoices, or app trip histories before you file. The last mid-year change before this one took effect on July 1, 2022.

IRS mileage rate history from 2021 to 2026

IRS mileage rate history from 2021 to 2026 shows the business rate rising from 56 cents to 76 cents, with mid-year increases in 2022 and 2026.4

Scroll horizontally to see more columns.
PeriodBusinessMedical and movingCharity
July 1 to December 31, 202676 cents23.5 cents14 cents
January 1 to June 30, 202672.5 cents20.5 cents14 cents
202570 cents21 cents14 cents
202467 cents21 cents14 cents
202365.5 cents22 cents14 cents
July 1 to December 31, 202262.5 cents22 cents14 cents
January 1 to June 30, 202258.5 cents18 cents14 cents
202156 cents16 cents14 cents

If you amend an older return, use the rate for the year you drove.

IRS business mileage rate, 2021 to 2026
2021
56¢
Jan to Jun 2022
58.5¢
Jul to Dec 2022
62.5¢
2023
65.5¢
2024
67¢
2025
70¢
Jan to Jun 2026
72.5¢
Jul to Dec 2026
76¢

Source: IRS mileage rate announcements, 2021 to 2026.

How to calculate your 2026 mileage deduction in 3 steps

You calculate your 2026 mileage deduction in 3 steps: split your business miles at June 30, multiply each period's miles by its rate, and add the two amounts. The example is a freelancer with 6,000 business miles from January to June and 6,000 from July to December.

Step 1: Split your business miles at June 30

Split your business miles at June 30 by totaling the miles in your log dated January 1 to June 30 and the miles dated July 1 to December 31. In the example, that is 6,000 miles in each period.

Step 2: Multiply each period's miles by its rate

Multiply each period's miles by its rate: 72.5 cents for the first half and 76 cents for the second.

Scroll horizontally to see more columns.
PeriodBusiness milesRateDeduction
January 1 to June 306,00072.5 cents$4,350
July 1 to December 316,00076 cents$4,560

Step 3: Add the two amounts

Add the two amounts to get your 2026 standard mileage deduction, then add business parking and tolls on top. In the example, the total is $8,910, and using one rate for all 12,000 miles would be $210 off in either direction.

Scroll horizontally to see more columns.
MethodDeduction
Two rates, split at June 30$8,910
72.5 cents for the whole year$8,700
76 cents for the whole year$9,120

How the mileage deduction lowers your self-employment tax

The mileage deduction lowers your self-employment tax because it comes off your Schedule C profit before the 15.3% self-employment tax is figured on 92.35% of what is left.5

In the example, the $8,910 mileage deduction cuts net earnings from self-employment by about $8,228. That lowers self-employment tax by about $1,259 ($8,910 × 92.35% × 15.3%), as long as your net earnings are below the Social Security wage base.

The deduction also lowers your income tax, by an amount that depends on your bracket. The self-employment tax guide covers the wage base and the rest of the mechanics. Enter your profit after the mileage deduction in the Solvent Self-Employment Tax Calculator to see your own figure.

Solvent self-employment tax calculator

Calculate your self-employment tax

Open the Solvent Self-Employment Tax Calculator

How to estimate quarterly taxes after your mileage deduction

To estimate quarterly taxes after your mileage deduction, subtract the deduction from your year-to-date profit and enter the result in the Solvent quarterly tax estimator. The January 15, 2027 payment covers September to December, so add your second-half miles at 76 cents before you make it.

Frequently asked questions about the IRS mileage rate

Is 50 cents a mile good reimbursement?

Fifty cents a mile is below the 2026 IRS business rate of 72.5 cents through June 30 and 76 cents from July 1. Federal law does not require an employer to match the IRS rate, but a lower rate may not cover what your car costs to run. Some states set their own reimbursement rules for employees.

Does the IRS mileage rate apply to electric vehicles?

Yes, the IRS mileage rate applies to electric vehicles, and to hybrids, at the same rate as gas and diesel cars. For 2026 that means 72.5 cents a business mile through June 30 and 76 cents from July 1. You can still choose actual costs, including charging, instead of the rate.

What will the IRS mileage rate be in 2027?

The IRS mileage rate for 2027 has not been announced as of October 2026. The IRS usually publishes the next year's rates in late December, and it announced the 2026 rates on December 29, 2025. Until then, use 76 cents for business miles driven from July 1 to December 31, 2026.

Can you use the standard mileage rate on a leased car?

Yes, you can use the standard mileage rate on a leased car, but once you choose it you have to keep using it for the whole lease, including any renewal. A car you own is more flexible: choose the rate in its first business year and you can switch methods later.

Is the IRS mileage rate the same as the GSA mileage rate?

The IRS mileage rate and the GSA mileage rate are set by different agencies for different jobs. The IRS rate is for deductions and tax-free reimbursement, and GSA's rate is what federal employees are reimbursed for driving their own car. For cars, GSA's rate matches the IRS business rate of 76 cents from July 1, 2026.

About the author

Nicolas Straut

Nicolas Straut

Personal and business finance writer, former Forbes contributor

Nicolas Straut writes about self-employment and quarterly tax, LLC formation and costs, and tax software for Solvent. He has written about money for about ten years, including for the fintech companies NorthOne and Fundera. He files his own taxes as a freelancer. He isn't a CPA or an enrolled agent (EA).

More articles by Nicolas Straut →
This page describes the federal standard mileage rates for tax year 2026 as set in IRS Notice 2026-10 and Announcement 2026-11. It does not cover state reimbursement laws or every vehicle rule; confirm how the rates apply to your car and return. Solvent provides educational estimates, not tax advice. Confirm your specific situation with a qualified tax professional.

Sources

  1. https://www.irs.gov/irb/2026-29_irb
  2. https://www.irs.gov/irb/2026-04_irb
  3. https://www.irs.gov/newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents
  4. https://www.irs.gov/tax-professionals/standard-mileage-rates · https://www.irs.gov/taxtopics/tc510
  5. https://www.irs.gov/taxtopics/tc554