The IRS upped its standard mileage rates for the second half of 2026, citing higher fuel costs. The new rates apply to miles driven on or after July 1, 2026. Mileage logged before that date still falls under the rates announced late last year.
Updated 2026 rates
Beginning July 1, 2026, the standard mileage rates are:
- 76 cents per mile for business travel, 6 cents more than in 2025
- 23.5 cents per mile for medical or moving purposes, 2.5 cents more than in 2025
- 14 cents per mile for charitable work, unchanged from 2025
If you use your vehicle solely for business purposes or a mix of business and personal, you can find the IRS’s rules for business use of a car here. The rates apply to all vehicles, whether they’re completely electric, hybrid, gasoline, or diesel-powered.
Other Vehicle Expense Tips
- You can also always calculate your vehicle’s actual costs, rather than standard mileage rates.
- If you own your vehicle, for the first year your vehicle is available for business use, you have to use the standard rate. In subsequent years, you can then use the standard rate or actual expenses.
- If you lease your vehicle, you can choose between the standard and actual expense options. But if you opt to use the standard mileage rate, you can’t switch to the actual expense rate later.
Keep good records
Whether for reimbursement from your employer or to claim a deduction on your tax return, keep accurate mileage records. Tracking when and why you drove can help support your deduction and ensure you’re using the correct rate.
If you have questions about the latest IRS mileage rates, please let us know.