2026 IRS Mileage Rate Change: What Small Business Owners Need to Know

Quick answer: For 2026, the IRS business standard mileage rate is **72.5 cents per mile from January 1 to June 30, and 76 cents per mile from July 1 to December 31. Because the rate changed mid-year, you must split your mileage log by date and apply each rate to the correct half of the year to claim the full deduction.

Key takeaways

- Business mileage rate: 72.5¢ (Jan 1–Jun 30) and 76¢ (Jul 1–Dec 31, 2026).

- The IRS raised the rate mid-year to reflect rising fuel costs — a rare move.

- Medical and moving miles rose to 23.5¢ (effective Jul 1, 2026); charitable stays at 14¢.

- Split your log by date, or you'll under-claim your deduction.

What is the 2026 IRS standard mileage rate?

The standard mileage rate is the per-mile figure you use to deduct the cost of running your vehicle for business, instead of tracking every gas receipt, oil change, and repair. For 2026, it moved twice:

- January 1 – June 30, 2026: 72.5 cents per mile (up 2.5 cents from 2025's 70 cents).

- July 1 – December 31, 2026: 76 cents per mile.

The IRS made the mid-year jump to 76 cents to keep pace with rising fuel costs. Mid-year adjustments are rare, so it's easy to miss if you set up your tracking in January and never revisited it.

Why the split rate matters for your deduction

Because the rate changed on July 1, you can't multiply your total 2026 business miles by a single number. Split your log into two buckets:

- Miles driven January through June are deducted at 72.5 cents.

- Miles driven July through December are deducted at 76 cents.

Example: 6,000 business miles in the first half plus 6,000 in the second half = (6,000 × $0.725) + (6,000 × $0.76) = $4,350 + $4,560 = $8,910. Applying the old rate to all 12,000 miles would shortchange you by more than $200.

What changed for medical, moving, and charitable miles

- Medical and moving miles rose to 23.5 cents per mile, effective July 1, 2026 (up from 20.5 cents). The moving deduction is limited to active-duty Armed Forces members — and, new for 2026 under the One, Big, Beautiful Bill, certain members of the intelligence community.

- Charitable miles stay at 14 cents per mile, a rate fixed by law that doesn't change year to year.

What small business owners should do now

1. Separate your mileage log by date so you can apply the right rate to each half of the year. If you use a tracking app, confirm it applied the July 1 change automatically — not all do.

2. Check whether the standard rate is your best option. You can instead deduct actual vehicle expenses (gas, insurance, repairs, depreciation), which is bigger for some vehicles. You generally choose your method in the first year the car is used for business, so ask your accountant before committing.

3. Update employee reimbursements for the second half of the year so you're not underpaying drivers — or overpaying and creating a taxable-income issue.

The bottom line

Two rate changes in one year means dates matter. Keep a clean, date-stamped log, apply 72.5¢ to first-half miles and 76¢ to second-half miles, and you'll claim the full deduction. If your log is messy or you're unsure which method saves more, loop in a tax pro before filing.

Frequently asked questions

What is the IRS business mileage rate for 2026?

It's 72.5 cents per mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026.

Why did the mileage rate change mid-year in 2026?

The IRS raised the business rate to 76 cents on July 1 to reflect rising fuel costs. Mid-year adjustments are uncommon.

How do I calculate my mileage deduction with two rates?

Split your log by date. Multiply your January–June business miles by $0.725 and your July–December business miles by $0.76, then add the two totals.

What is the 2026 medical and moving mileage rate?

23.5 cents per mile, effective July 1, 2026. The moving deduction applies only to active-duty Armed Forces members and certain intelligence community members.

What is the 2026 charitable mileage rate?

14 cents per mile. This rate is set by statute and does not change year to year.

This is general information, not tax advice. Confirm current figures with the IRS or your accountant before filing.