Wealthy PotIRS Mileage Rate 2026: 72.5 Cents, Then 76 Cents From July 1
2026 has two IRS business mileage rates. Miles driven for business from January 1 to June 30, 2026 are worth 72.5 cents a mile; miles from July 1 to December 31 are worth 76 cents. The IRS raised the rate mid-year "from recent increases in the price of fuel," as it last did in mid-2022. The medical and military moving rate rose from 20.5 to 23.5 cents, and the charity rate stays at 14 cents, which is set by law.
The Short Answer
- Business, January 1 to June 30, 2026: 72.5 cents a mile.
- Business, July 1 to December 31, 2026: 76 cents a mile.
- Medical and military moving: 20.5 cents, then 23.5 cents from July 1.
- Charity: 14 cents all year (fixed by section 170(i) of the tax code).
- 2025: 70 cents for business, 21 cents medical, 14 cents charity.
2026 Mileage Rates
| Use | Jan 1 - Jun 30, 2026 | Jul 1 - Dec 31, 2026 | 2025 |
|---|---|---|---|
| Business (including self-employed) | 72.5 cents | 76 cents | 70 cents |
| Medical and military moving | 20.5 cents | 23.5 cents | 21 cents |
| Charity | 14 cents | 14 cents | 14 cents |
IRS standard mileage rates page (updated July 28, 2026); IR-2025-128 for January to June; Announcement 2026-11 (Internal Revenue Bulletin 2026-29) for the July 1 change. The IRS lists the moving rate as military only.
The rate is also the amount an employer can reimburse per mile and have it treated as substantiated. The July 1 rates apply to expenses paid or incurred on or after July 1, 2026, and to mileage allowances paid to employees on or after that date.
How to Use Two Rates in One Year
Because the rate changed on July 1, your 2026 mileage log needs the date of each trip, or at least separate totals for the two halves of the year. A hypothetical driver with 10,000 business miles, 5,000 before July 1 and 5,000 after, deducts 5,000 x $0.725 = $3,625 plus 5,000 x $0.76 = $3,800, or $7,425 in total (our arithmetic). Using 76 cents for all 10,000 miles would overstate the deduction by $175.
For gig drivers and couriers, the deduction comes off your self-employment profit, which lowers both self-employment tax and income tax. Our gig earnings calculator applies the 2026 rates, and the 1099 tax calculator estimates the tax.
Standard Rate vs Actual Expenses
- Two methods: the standard mileage rate, or your actual costs (gas, oil, repairs, tires, insurance, registration, licenses, and depreciation or lease payments) times your business-use share.
- Owned car: to use the standard rate, you must choose it in the first year you use the car for business; later years can switch to actual expenses.
- Leased car: if you choose the standard rate, you must use it for the whole lease.
- Five or more cars at once: no standard rate.
- Parking and tolls for business trips are deductible on top of either method.
- Depreciation: 35 cents of the 2026 business rate is treated as depreciation, which reduces your car's basis.
Which method gives the larger deduction depends on your car. For reference, AAA puts the 2026 operating cost of a new car (fuel, maintenance, tires) at 29.04 cents a mile, and its full cost including insurance, depreciation and finance charges at 85.75 cents a mile at 15,000 miles a year. Compare both methods in the first year you use the car for business, since that choice decides whether the standard rate stays available.
IRS Mileage Rates by Year
| Period | Business | Medical / moving | Charity |
|---|---|---|---|
| 2026 (Jul 1 - Dec 31) | 76 | 23.5 | 14 |
| 2026 (Jan 1 - Jun 30) | 72.5 | 20.5 | 14 |
| 2025 | 70 | 21 | 14 |
| 2024 | 67 | 21 | 14 |
| 2023 | 65.5 | 22 | 14 |
| 2022 (Jul 1 - Dec 31) | 62.5 | 22 | 14 |
| 2022 (Jan 1 - Jun 30) | 58.5 | 18 | 14 |
| 2021 | 56 | 16 | 14 |
| 2020 | 57.5 | 17 | 14 |
| 2019 | 58 | 20 | 14 |
| 2018 | 54.5 | 18 | 14 |
Cents per mile, from the IRS "Mileage rates for all years" table. The business rate rose 31% from 58 cents in 2019 to 76 cents in the second half of 2026 (our arithmetic).
The 2027 Rate
The IRS has not announced the 2027 rates. It announces each year's rates late in the previous year; the January 2026 rate came in IR-2025-128. We don't estimate it. We'll update this page when the IRS announces it. For gig workers, our DoorDash taxes guide and side hustles page show how mileage affects what you keep.
Sources & Methodology
- IRS, Standard mileage rates (updated July 28, 2026): 2026 rates and history.
- IRS, Internal Revenue Bulletin 2026-29 (Announcement 2026-11): the July 1, 2026 increase and its reason.
- IRS Notice 2026-10: 2026 rates and the 35-cent depreciation component.
- IRS Topic 510, Business use of car: standard vs actual method rules.
- AAA, Your Driving Costs 2026.
This article is general information, not tax advice. Rates checked against IRS sources on October 20, 2026.
FAQ
What is the IRS mileage rate for 2026?
72.5 cents a mile for business miles driven January 1 to June 30, 2026, and 76 cents for miles from July 1 to December 31, 2026.
Why did the mileage rate change in the middle of 2026?
The IRS raised it on July 1, 2026, citing "recent increases in the price of fuel." It last made a mid-year change in 2022.
What is the 2026 medical mileage rate?
20.5 cents a mile through June 30, 2026, and 23.5 cents from July 1. The same rate applies to moving for members of the Armed Forces.
What is the charity mileage rate for 2026?
14 cents a mile. It is fixed by section 170(i) of the tax code, so the IRS does not adjust it.
Can I use 76 cents for all my 2026 miles?
No. Miles driven before July 1, 2026 use 72.5 cents; only miles from July 1 use 76 cents.
