Make This Useful

Updated · Make This Useful

Mileage deduction calculator for 2026, with both IRS rates

The IRS business mileage rate for 2026 is 72.5 cents a mile for driving from January 1 to June 30 and 76 cents a mile from July 1 to December 31, after a mid-year increase (IRS notice IR-2026-29). Multiply each period's business miles by its rate and add them: 4,000 miles in the first half and 5,000 in the second come to $2,900 + $3,800 = $6,700.

Add up my miles

Example numbers

Rates from the IRS mileage table, checked October 2026. Count business miles only, from your log.

2026 mileage deduction$6,700.00
January 1 to June 30: 4,000 mi × 72.5¢
$2,900.00
July 1 to December 31: 5,000 mi × 76¢
$3,800.00

Deduction = business miles in each period × that period’s IRS rate (72.5¢, then 76¢).

Why are there two mileage rates for 2026?

The IRS raised the business rate partway through the year, as it last did in 2022, when the second half of the year went from 58.5 to 62.5 cents. Miles driven before July 1, 2026 use 72.5 cents; miles from July 1 use 76 cents. If your log only has a yearly total, split it using the dates in your calendar or invoices rather than applying one rate to everything.

What should a mileage log show?

For each trip: the date, where you went, why, and the miles. Note the odometer at the start and end of the year too, so total and business miles can be checked against each other. A log written at the time beats one rebuilt in April from memory; a notes app or the back page of a job book both work if you fill it in every day.

Trips between jobs, to a supplier for job materials and out to a customer to give an estimate are the miles owners most often forget to write down. They add up: 20 miles a working day over 230 days is 4,600 miles, worth $3,335 at 72.5 cents or $3,496 at 76.

Standard rate or actual vehicle costs?

The standard rate needs only your mileage log. The actual-cost method adds up fuel, repairs, insurance, registration and depreciation, then takes the business share. The IRS suggests working out both before you choose. To use the standard rate for a car you own, you must choose it in the first year the car is used in your business; after that you can switch between methods year to year.

Example: a year split at July 1

4,000 business miles from January to June × 72.5¢ = $2,900. 5,000 business miles from July to December × 76¢ = $3,800. Deduction at the standard rate: $6,700.

Using 76 cents for all 9,000 miles would give $6,840, which overstates the deduction by $140; using 72.5 cents for all of them would leave $175 on the table.

Frequently asked questions

What are the 2026 rates for charity, medical and moving miles?

Charity driving is 14 cents a mile all year. Medical and military moving miles are 20.5 cents from January to June and 23.5 cents from July 1, 2026, according to the IRS table.

Can I use the mileage rate to charge customers for travel?

As a cost, yes: it is a reasonable figure for what a mile of driving costs. A trip charge should also cover your drive time; the trip charge calculator adds both.

Do I need receipts if I use the standard mileage rate?

Not for fuel and repairs, since the rate replaces them, but you do need the mileage log. Parking fees and tolls for business trips are separate and need their own receipts.

Sources