The IRS Just Raised the 2026 Mileage Rate to 76 Cents

The IRS raised the business standard mileage rate to 76 cents per mile, effective July 1, 2026. It was 72.5 cents for the first half of the year. This is a rare mid-year increase, so the rate you claim now depends on when you drove the trip: 72.5 cents for miles through June 30, and 76 cents for miles from July 1 onward.

Sources: IRS, Internal Revenue Bulletin 2026-29 (modifying Notice 2026-10), which sets the mid-year business rate at 76 cents per mile from July 1, 2026, and the medical/moving rate at 23.5 cents. The 72.5-cent business rate applied from January 1 to June 30, 2026.

What changed and when

The IRS almost always sets one mileage rate for the whole year in December. It did that for 2026: 72.5 cents a mile, up from 70 cents in 2025. Then, on July 1, it raised the business rate again to 76 cents for the rest of the year. The reason was rising fuel costs. The last time the IRS made a mid-year change like this was 2022, when gas prices spiked.

• January 1 to June 30, 2026: 72.5 cents per business mile.
• July 1 to December 31, 2026: 76 cents per business mile.
• Medical and moving (moving is active-duty military only) rose from 20.5 to 23.5 cents on July 1.
• Charity stays at 14 cents. That rate is set by law, not by the IRS, so it did not change.

Why the trip date matters

Because there are two business rates for one year, you cannot just multiply your whole year's miles by a single number. The rate is tied to the date you drove, not the date you file. A trip on June 15 is worth 72.5 cents. The same trip on July 15 is worth 76 cents. If you drive for a living, that split is the whole reason a dated mileage log matters: without one, you cannot prove which miles fall in which half of the year.

A worked example

Say you drove 12,000 business miles in 2026, split evenly, 6,000 before July 1 and 6,000 after:

1. First half: 6,000 miles x $0.725 = $4,350.
2. Second half: 6,000 miles x $0.76 = $4,560.
3. Total deduction: $4,350 + $4,560 = $8,910.

Run the exact numbers for your own mileage with the mileage deduction calculator, and see the full 2026 IRS mileage rate guide for the rules on who can claim it.

Who this helps

The higher rate helps self-employed and 1099 workers, gig drivers on Uber, DoorDash, Lyft, and Instacart, and small business owners who use the standard mileage method. You claim it on Schedule C, line 9. It reduces both your income tax and your 15.3% self-employment tax. W-2 employees still cannot deduct business mileage on a federal return.

What to do now

1. Keep logging every business trip with its date, so your first-half and second-half miles are separated.
2. Apply 72.5 cents to miles driven through June 30 and 76 cents to miles from July 1.
3. Do not round your total miles to a single rate. Split them by date.
4. Total both halves on Schedule C when you file.

Do I use 76 cents for my whole 2026 return?

No. Only for miles driven on or after July 1, 2026. Miles from January through June use 72.5 cents. You add the two halves together.

Why did the IRS change the rate in the middle of the year?

Rising fuel prices. The standard rate is meant to approximate the real cost of operating a vehicle, and when costs jump sharply mid-year the IRS can issue a new rate. It last did this in 2022.

Does the increase apply to electric vehicles?

Yes. The standard mileage rate is the same for gas, hybrid, and electric vehicles. The 76-cent rate applies to all of them for trips from July 1, 2026.

A mid-year rate change is exactly why an automatic, dated mileage log matters. TruMile records every trip with its date, so your first-half and second-half miles are separated and IRS-ready. See how it works for self-employed drivers.

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