The IRS raised its optional standard mileage rates in the middle of 2026. In Announcement 2026-11, published in Internal Revenue Bulletin 2026-29 on July 13, 2026, the IRS said the change "results from recent increases in the price of fuel." The new rates apply to driving on or after July 1, 2026. The rates the IRS announced in December 2025 (news release IR-2025-128, Notice 2026-10) still apply to driving before July 1.
2026 rates at a glance
| Purpose | 2025 | Jan. 1 – June 30, 2026 | July 1 – Dec. 31, 2026 |
|---|---|---|---|
| Business | 70 cents | 72.5 cents | 76 cents |
| Medical | 21 cents | 20.5 cents | 23.5 cents |
| Moving (certain active-duty military and intelligence community members) | 21 cents | 20.5 cents | 23.5 cents |
| Charitable service | 14 cents | 14 cents | 14 cents |
The IRS's standard mileage rates page lists both 2026 periods. The charitable rate doesn't change because Congress sets it by law. When the IRS set the January rates, it said they apply to fully electric and hybrid vehicles as well as gasoline and diesel vehicles. The midyear announcement left the other parts of Notice 2026-10 in place.
Who this affects
The business rate matters most to people who drive for their own business and report it on Schedule C. That includes rideshare and delivery drivers, contractors, real estate agents and other sole proprietors. For many of them, mileage is the largest deduction. Our gig workers and freelancers and self-employed guides explain how it fits with self-employment tax and quarterly payments.
Employers that reimburse workers at the standard rate can use 76 cents for travel on or after July 1, 2026. Employees generally can't deduct unreimbursed work driving on their federal return. The IRS notes exceptions for certain Armed Forces reservists, some state and local officials, certain performing artists and eligible educators.
Example. A self-employed courier drives 4,000 business miles from January through June 2026 and 4,000 more from July through December. The deduction is 4,000 × $0.725 = $2,900 for the first half, plus 4,000 × $0.76 = $3,040 for the second half, for a total of $5,940. At the original 72.5-cent rate all year, it would have been $5,800.
Rules to keep in mind
Split your log at June 30. You need to know how many business miles fell in each half of 2026. A log or app that records the date of each trip makes this easy.
Choose the standard rate in year one. If you own the vehicle and want to use the standard rate, you must use it in the first year the car is available for business. In later years you can choose either the standard rate or actual expenses.
Leased vehicles are locked in. If you use the standard rate for a leased vehicle, you must keep using it for the entire lease, including renewals.
It's optional. You can instead deduct actual costs, such as fuel, repairs, insurance and depreciation, if you keep the records.
Keep a mileage log
The rate only helps if you can prove the miles. Write down the date, starting point, destination, business purpose and miles for each trip. Missing logs are a common reason vehicle deductions are cut in a Schedule C audit. If you get an audit letter asking about mileage, see IRS audits and our page on Letter 566.
Frequently asked questions
Which rate do I use for my 2026 return?
Both. Use 72.5 cents for business miles driven Jan. 1 through June 30, 2026, and 76 cents for business miles driven July 1 through Dec. 31, 2026. You'll report these on your 2026 return, filed in 2027.
Does this change my 2025 return?
No. Business miles driven in 2025 use 70 cents per mile.
Does the rate cover fuel, insurance and repairs?
Yes. The standard rate is used instead of tracking your actual operating costs, so you generally can't deduct fuel or repairs on top of it. If you'd rather deduct actual costs, you need receipts for each expense and a record of business versus personal miles.
Sources
- Internal Revenue Service (IRS), Internal Revenue Bulletin 2026-29 (July 13, 2026), Announcement 2026-11, "Optional Standard Mileage Rates". irs.gov
- IRS, IR-2025-128, "IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents", Dec. 29, 2025. irs.gov
- IRS, Notice 2026-10, 2026 standard mileage rates. irs.gov
- IRS, "Standard mileage rates". irs.gov
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.