The 2026 IRS Mileage Rate Is 72.5 Cents. Here's How to Claim It.

The IRS standard mileage rate for 2026 is 72.5 cents per mile for business driving. That's up 2.5 cents from the 2025 rate of 70 cents.

If you drive 15,000 business miles this year, that's a $10,875 deduction. Calculate your exact deduction here.

Source: IRS Notice 2025-XX, effective January 1, 2026.

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All 2026 IRS Mileage Rates

The business rate applies to self-employed workers, independent contractors, and gig drivers. W-2 employees cannot deduct mileage on federal taxes (this became permanent under the One Big Beautiful Bill in 2025).

How the IRS Calculates the Rate

The IRS reviews gas prices, insurance costs, depreciation, and maintenance data each fall. They announce the new rate in late December, effective January 1. The rate approximates the average cost of operating a vehicle for business.

You don't need to track actual expenses if you use the standard rate. Multiply your business miles by 72.5 cents. That's your deduction.

Who Can Use the Standard Mileage Rate

• Self-employed / 1099 workers, yes, on Schedule C
• Gig drivers (Uber, DoorDash, Lyft, Instacart), yes
• Small business owners, yes, for business-use vehicles
• W-2 employees, no, not since 2018 (now permanent)
• Charity volunteers, yes, at the 14¢ charity rate
• Medical travel, yes, at the 22¢ medical rate

You must choose between the standard mileage rate and the actual expenses method in the first year you use a vehicle for business. You can switch in later years, but the choice matters.

How to Claim Your Mileage Deduction

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Three steps:

1. Track every business trip. Record the date, destination, business purpose, and miles driven. The IRS requires a "contemporaneous" log, meaning you record trips as they happen, not from memory at year-end. See what the IRS requires in a mileage log.

2. Multiply by 72.5 cents. Total business miles × $0.725 = your deduction. Use our free mileage deduction calculator to get your exact number.

3. Report on your tax return. Self-employed: Schedule C, Line 9. Charitable: Schedule A. Medical: Schedule A (subject to 7.5% AGI floor).

Historical IRS Mileage Rates

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The rate has increased 29% since 2020, driven by higher gas prices and vehicle costs. See the full historical rate table back to 1997.

Standard Mileage Rate vs Actual Expenses

You have two choices for deducting vehicle costs:

Standard mileage rate: 72.5¢ × business miles. Simple. No receipts needed beyond the mileage log.

Actual expenses: Track every cost, gas, insurance, repairs, depreciation, registration, parking, tolls. Deduct the business-use percentage. More work, sometimes more money.

For most people driving a newer car under 20,000 business miles/year, the standard rate wins. For older, paid-off cars with high maintenance costs, actual expenses may save more. Read the full comparison or try our standard vs actual calculator.

What Changed in 2026: The One Big Beautiful Bill

The TCJA had temporarily suspended W-2 employee mileage deductions through 2025. The One Big Beautiful Bill made this permanent. If you're a W-2 employee, you cannot deduct mileage on your federal return. Period.

Self-employed and 1099 workers are unaffected. The standard mileage rate deduction remains fully available on Schedule C.

FAQ

What is the IRS mileage rate for 2026?

72.5 cents per mile for business driving, 22 cents for medical/moving, and 14 cents for charity.

Can W-2 employees deduct mileage in 2026?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill.

Is the mileage rate different for electric vehicles?

No. The same 72.5-cent rate applies to all vehicles, gas, hybrid, and electric. In fact, the standard rate over-compensates EV owners since their operating costs are lower.

Do I need receipts to claim the standard mileage rate?

Not for gas or maintenance. But you do need a mileage log with the date, destination, purpose, and miles for each business trip.

When does the 2026 rate take effect?

January 1, 2026. It applies to all business miles driven during the 2026 calendar year.

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