The 2026 IRS Mileage Rate: 72.5 Cents, Then 76 Cents From July 1

The IRS set the 2026 standard mileage rate at 72.5 cents per mile for business driving to start the year, then raised it to 76 cents on July 1 in a rare mid-year increase. If you drive for work, that number can turn into one of the bigger deductions on your return. The catch is that plenty of people either forget to track their miles or track them in a way that would not survive an audit. Here is how the rate works and how to actually claim it.

The 2026 rates

The rates changed at midyear. For trips from January 1 through June 30:

• 72.5 cents per mile for business use
• 20.5 cents per mile for medical purposes (and moving, but only for active-duty military)
• 14 cents per mile for driving in service of a charity, a rate set by law that has not changed in years

For trips from July 1 through December 31:

• 76 cents per mile for business use
• 23.5 cents per mile for medical purposes (and moving, for active-duty military)
• 14 cents per mile for charitable driving, unchanged

The business rate is the one most people use. Because it changed midyear, the date on each trip decides which rate applies, so a dated log matters more than usual this year.

Standard mileage vs actual expenses

You have two ways to deduct car costs, and you pick one. The standard mileage rate is the simple one. You track your business miles and multiply by the rate for each trip's date, 72.5 cents through June 30 and 76 cents from July 1. That single number is meant to cover gas, insurance, repairs, and depreciation, all of it.

The actual expense method means adding up what the car really cost you, gas, maintenance, insurance, registration, depreciation, and deducting the business-use share. It is more work and more paperwork, but it can come out ahead if you drive an expensive vehicle or run up big repair bills.

For most people with a normal car, the standard rate wins on effort and often on dollars too. One thing to know up front: if you want the option to use the standard rate on a car, you generally have to choose it in the first year you use that car for business. If you have already been deducting actual expenses, talk to a tax pro before you switch.

What a real mileage log needs

The deduction is only as good as your records. The IRS wants a log you kept as you went, not one you rebuilt from memory in April. Each trip should have:

• the date
• the miles driven
• where you went and why, the business purpose

Something like "3/14, 22 miles, client site visit" is the idea. Your drive from home to a regular workplace is a personal commute and does not count, so leave it out.

A quick example

Say you drove 8,000 business miles in 2026, split evenly across the year. The first 4,000 miles at 72.5 cents come to 2,900 dollars, and the second 4,000 at 76 cents come to 3,040 dollars, about 5,940 dollars in all. If you are in a 22 percent bracket and also paying self-employment tax, that one deduction is worth well over a thousand dollars in real money. That is why the log matters. Skipping it is handing cash back to the IRS.

To run your own numbers, the free mileage deduction calculator applies both 2026 rates to each half of the year for you.

How Vuuv helps

Vuuv uses your phone's GPS to log your drives automatically, with the date, distance, and route saved for each trip. You classify each one as business or personal, and the miles roll straight into your Schedule C numbers. No notebook in the glovebox, no rebuilding the year from memory.

This article is general information, not tax advice. Tax rules change and every situation is different. Confirm the details against current IRS guidance or talk to a qualified tax professional before you file.