The 2026 business standard mileage rate is 72.5¢ per mile for January 1 through June 30, then 76¢ per mile for business miles on or after July 1.
The IRS standard mileage rate can be used in qualifying situations to calculate deductible vehicle costs for business use. It is also used in certain mileage allowance and substantiation rules.
Using the standard mileage rate is optional. Depending on the situation, eligible taxpayers may instead calculate actual vehicle expenses. Reimbursement from an employer is a separate question from whether an expense is deductible on a tax return.
For ordinary business mileage calculations, miles tied to expenses before July 1 use the first-half rate and miles tied to expenses on or after July 1 use the revised second-half rate.
One is about calculating eligible business vehicle costs. The other is about an employer reimbursing business driving.
Eligible taxpayers can use the optional standard mileage rate instead of calculating the actual costs of operating the vehicle, subject to IRS rules on who can use the method and when.
Employers may use mileage-based reimbursement arrangements. A reimbursement policy, accountable-plan requirements and the employee's tax treatment are separate from simply looking up the IRS business mileage rate.
The July revision changed the business, medical and moving rates. The charitable rate remained 14¢ per mile.
* Moving deductions are limited to eligible situations under federal law. Check current IRS guidance for eligibility.
Midyear revision
Notice 2026-10 set the business standard mileage rate at 72.5¢ per mile beginning January 1, 2026.
Effective Jan 1 – Jun 30Announcement 2026-11 raised the business rate to 76¢ per mile for expenses paid or incurred on or after July 1, citing recent increases in fuel prices.
Effective Jul 1 – Dec 31The IRS revised the optional standard mileage rates for business, medical and moving purposes beginning July 1, 2026. The charitable rate stayed at 14¢ per mile. Other provisions of Notice 2026-10 remained in effect.
IRS Announcement 2026-11 ↗A rate tells you how to calculate an amount. It does not create the underlying business-mileage record. Keep enough information to support when, where and why business driving occurred, along with the distance driven.
HonestMile helps people who drive for work keep organized trip history and business mileage records. Unlimited trips are free; automatic mileage tracking is available with Pro.
The key detail in 2026 is the July 1 change. The trip date matters when choosing the business rate.
It is 72.5¢ per mile for business miles from January 1 through June 30, 2026, and 76¢ per mile for business miles on or after July 1 through December 31, 2026.
For ordinary business mileage calculations, 72.5¢ applies to the first half of 2026 and 76¢ applies to the second half. Employer reimbursement arrangements can have additional timing rules.
Not necessarily. The IRS rate is a federal optional standard mileage rate. Employer reimbursement policies and any state-law obligations can be separate questions.
No. Federal rules restrict deductions for unreimbursed employee travel expenses, with specific exceptions. Self-employed people and other eligible taxpayers can have different rules. Check the IRS guidance that applies to your situation.
