Deductions
IRS standard mileage rate 2026: 72.5 cents, then 76 cents from July 1
The 2026 IRS mileage rates for business, medical, moving and charity, before and after the July 1 increase, with the rules for who can use them, the split-year math and the rate history.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
The IRS business standard mileage rate for 2026 is 72.5 cents per mile from January 1 through June 30, and 76 cents per mile from July 1 through December 31. The medical and military moving rate is 20.5 cents, then 23.5 cents from July 1. The charity rate stays at 14 cents per mile all year.
The 2026 mileage rates, before and after July 1
The IRS set the first 2026 rates on December 29, 2025 (IR-2025-128 and Notice 2026-10). The business rate rose 2.5 cents from 2025 to 72.5 cents per mile. The medical rate fell half a cent to 20.5 cents.
In Announcement 2026-11, published in Internal Revenue Bulletin 2026-29 on July 13, 2026, the IRS raised the business rate to 76 cents and the medical and moving rate to 23.5 cents. The IRS says the change results from recent increases in the price of fuel. The charity rate didn't change because it is fixed by law.
Scroll sideways to see all columns.
| Purpose | Jan. 1 – June 30, 2026 | July 1 – Dec. 31, 2026 |
|---|---|---|
| Business (including self-employed) | 72.5 | 76 |
| Medical | 20.5 | 23.5 |
| Moving (active-duty military and certain intelligence community members) | 20.5 | 23.5 |
| Charity | 14 | 14 |
Which rate applies to a trip
Announcement 2026-11 says the 76 cent and 23.5 cent rates apply to transportation expenses paid or incurred on or after July 1, 2026. The Notice 2026-10 rates still apply to expenses paid or incurred before July 1, 2026.
For employers, the higher rates apply to mileage allowances paid to an employee on or after July 1, 2026, for transportation expenses the employee paid or incurred on or after July 1, 2026. An allowance paid before July 1, or one for expenses incurred before July 1, uses the Notice 2026-10 rates.
So a self-employed owner who drove all year adds two numbers: first-half business miles times 72.5 cents, plus second-half business miles times 76 cents.
How the IRS sets each rate
An independent contractor runs an annual study for the IRS of the fixed and variable costs of operating a car. The business rate is based on both fixed and variable costs. The medical and moving rate is based on variable costs only.
The charity rate is set by Section 170(i) of the Internal Revenue Code at 14 cents per mile, so the IRS can't change it.
The rates apply to fully electric and hybrid cars as well as gasoline and diesel vehicles. They cover a car, van, pickup or panel truck.
Who can use the 2026 business rate
Self-employed people and business owners can use the business rate to figure the deductible cost of driving for their business.
Most W-2 employees can't. Section 70110 of the One, Big, Beautiful Bill Act made permanent the disallowance of miscellaneous itemized deductions subject to the 2% of AGI floor, including unreimbursed employee travel expenses. Notice 2026-10 says the business rate can't be used for that itemized deduction, except for certain educator expenses.
Some employees still deduct unreimbursed travel as an adjustment to income on Schedule 1 of Form 1040 and can keep using the business rate. Notice 2026-10 names members of a reserve component of the Armed Forces, state or local government officials paid in whole or in part on a fee basis, and certain performing artists. Eligible educators can deduct certain unreimbursed travel up to a dollar limit.
- Moving mileage: only active-duty Armed Forces members moving under a military order for a permanent change of station, and intelligence community members who move after December 31, 2025, because of a change of assignment that requires relocation (Section 70113 of the One, Big, Beautiful Bill Act)
- Charity mileage: driving while giving free services to a charitable organization
Standard mileage rate vs actual car expenses
For a car you own, you must choose the standard mileage rate in the first year the car is available for business use. In later years you can choose either the standard rate or actual expenses. For a leased car, choosing the standard rate means using it for the entire lease period, including renewals.
If you use the standard rate for a year, you can't deduct actual car expenses for that year. That rules out depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance and registration fees.
You can still deduct business-related parking fees and tolls on top of the standard rate. Parking at your regular place of work is a nondeductible commuting expense. A self-employed person can also deduct the business part of state and local personal property taxes on the vehicle on Schedule C.
- You can't use the standard rate if you use five or more cars for business at the same time, such as in fleet operations. Alternating between cars doesn't count as using them at the same time.
- You can't use it for a car you claimed depreciation on with any method other than straight line for its estimated useful life.
Which miles count as business miles
Driving between your home and your main or regular place of work is personal commuting. It isn't deductible.
If you regularly work at two or more places in one day, you can deduct the cost of getting from one workplace to another. A temporary work location is one where the assignment is realistically expected to last, and does last, one year or less.
If your home office qualifies as your principal place of business, you can deduct daily trips between home and another work location in the same trade or business.
Depreciation portion and 2026 employer vehicle limits
Part of the business rate counts as depreciation, which reduces the car's basis. Notice 2026-10 sets that portion at 35 cents per mile for 2026, up from 33 cents for 2025, 30 cents for 2024, 28 cents for 2023 and 26 cents for 2022. Announcement 2026-11 left the notice's other provisions in effect.
For a fixed and variable rate (FAVR) allowance plan, the standard automobile cost can't be more than $61,700 for 2026. Employers using the fleet-average or vehicle cents-per-mile valuation rule can't use it for a car, truck or van worth more than $61,700 when first made available to an employee for personal use in 2026.
IRS mileage rate history, 2020 to 2026
The 2026 change is the first mid-year increase since July 2022 in the IRS table. Medical and moving rates move with variable costs, so they can fall while the business rate rises, as they did in January 2026.
Scroll sideways to see all columns.
| Period | Business | Charity | Medical or military moving |
|---|---|---|---|
| July 1 – Dec. 31, 2026 | 76 | 14 | 23.5 |
| Jan. 1 – June 30, 2026 | 72.5 | 14 | 20.5 |
| 2025 | 70 | 14 | 21 |
| 2024 | 67 | 14 | 21 |
| 2023 | 65.5 | 14 | 22 |
| July 1 – Dec. 31, 2022 | 62.5 | 14 | 22 |
| Jan. 1 – June 30, 2022 | 58.5 | 14 | 18 |
| 2021 | 56 | 14 | 16 |
| 2020 | 57.5 | 14 | 17 |
Aldro's team prepares and files Schedule C with your mileage deduction as part of one flat $399 price that covers everything tax for the year.
Worked example
Say a self-employed consultant drives 6,000 business miles from January through June 2026 and 5,000 business miles from July through December. First half: 6,000 x $0.725 = $4,350. Second half: 5,000 x $0.76 = $3,800. Standard mileage amount for 2026: $4,350 + $3,800 = $8,150. Business parking and tolls are added on top. Using 76 cents for all 11,000 miles would give $8,360, which overstates it by $210. For basis, 11,000 miles x 35 cents = $3,850 of the rate counts as depreciation and reduces the car's basis.
Common questions
What is the IRS mileage rate for 2026?
72.5 cents per business mile from January 1 through June 30, 2026, and 76 cents from July 1 through December 31. Medical and military moving is 20.5 cents, then 23.5 cents. Charity is 14 cents all year.
Why did the mileage rate change on July 1, 2026?
Announcement 2026-11 modified Notice 2026-10 and raised the business, medical and moving rates. The IRS says the change results from recent increases in the price of fuel.
Does the standard mileage rate apply to electric and hybrid cars?
Yes. The IRS says the rates apply to fully electric and hybrid cars as well as gasoline and diesel vehicles.
Can W-2 employees deduct unreimbursed mileage in 2026?
Generally no. The One, Big, Beautiful Bill Act made the disallowance of unreimbursed employee travel as a miscellaneous itemized deduction permanent. Armed Forces reservists, fee-basis state or local government officials, certain performing artists and eligible educators are exceptions.
Can I deduct parking and tolls if I use the standard mileage rate?
Yes, business-related parking fees and tolls are deductible in addition to the standard rate. Parking at your regular place of work is a commuting expense and isn't deductible.
What was the IRS mileage rate in 2025?
70 cents per mile for business, 21 cents for medical or military moving and 14 cents for charity.
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Sources
- IRS: IR-2025-128, 2026 business standard mileage rate set at 72.5 cents · checked October 31, 2026
- IRS: Standard mileage rates · checked October 31, 2026
- IRS: Internal Revenue Bulletin 2026-29 (Announcement 2026-11) · checked October 31, 2026
- IRS: Notice 2026-10 · checked October 31, 2026
- IRS: 2026 standard mileage rates and maximum automobile fair market values · checked October 31, 2026
- IRS: Publication 463 (2025), Travel, Gift, and Car Expenses · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.