Skip to content
SosromenduranTax Tools

Free calculator · Tax year 2026

IRS Mileage Rate Calculator 2026

The IRS raised the 2026 business mileage rate in the middle of the year. Enter miles for each half of the year to apply the right rate.

2026 has two business rates: 72.5¢ per mile through June 30 and 76¢ from July 1.

Total at IRS standard rates

$3,712.50

Business, January 1 – June 30 (72.5¢)
$1,812.50
Business, July 1 – December 31 (76¢)
$1,900.00
Business total
$3,712.50

Self-employed people deduct business miles on Schedule C. Most W-2 employees cannot deduct unreimbursed mileage on their federal return.

Based on IRS Notice 2026-10 and Announcement 2026-11. Estimate only — not tax advice. Sources

How this calculator works

The IRS sets standard mileage rates that let you value car use without tracking every gas receipt. In 2026 the IRS raised the business and medical rates in the middle of the year. That means one total for the year is not enough; you need to split your miles by date.

The calculator asks for five numbers:

  • Business miles driven January 1 to June 30, 2026
  • Business miles driven July 1 to December 31, 2026
  • Medical miles for each of the same two periods
  • Charity miles for the whole year

It multiplies each figure by the rate for its period and category, then adds them up. The result shows a total for each category and a grand total. It does not decide whether you can deduct the amount; that depends on your situation, covered below.

2026 standard mileage rates at a glance

PurposeJan 1 – Jun 30, 2026Jul 1 – Dec 31, 2026
Business72.5¢ per mile76¢ per mile
Medical and military moving20.5¢ per mile23.5¢ per mile
Charity14¢ per mile14¢ per mile

The first-half rates come from IRS Notice 2026-10, announced in the IRS 2026 mileage rate release. The second-half increase came in Announcement 2026-11. The charity rate is fixed by law, so it did not change. For comparison, the 2025 business rate was 70¢.

Worked example

Jamie is a self-employed photographer. In 2026 Jamie logs 4,000 business miles from January to June and 5,000 from July to December. Jamie also drives 300 medical miles in the first half, 200 in the second half and 250 miles for a charity.

  • Business, first half: 4,000 × $0.725 = $2,900.00
  • Business, second half: 5,000 × $0.76 = $3,800.00
  • Business total: $6,700.00
  • Medical, first half: 300 × $0.205 = $61.50
  • Medical, second half: 200 × $0.235 = $47.00
  • Medical total: $108.50
  • Charity: 250 × $0.14 = $35.00
  • Grand total: $6,700.00 + $108.50 + $35.00 = $6,843.50

If Jamie had used 72.5¢ for all 9,000 business miles, the figure would be $6,525. Splitting by date adds $175 to the business amount.

Why the rate changed mid-year

The business rate is meant to reflect the full cost of running a car: fuel, insurance, repairs and depreciation. When costs move sharply, the IRS can update the rate during the year, as it did for July 1, 2026. The new rate applies only to miles driven on or after that date.

So the date of each trip matters, not the date you file or get reimbursed. A June trip is 72.5¢ a mile even if your employer pays you in August. A good mileage log records the date, the purpose, the start and end points and the miles.

If you track miles in an app or spreadsheet, total them as of June 30 and again at year end. Subtract the first figure from the second to get the July–December miles. Enter each total in the matching box above. Employers who reimburse at the IRS rate usually switched to 76¢ for trips from July 1, but some kept their own rate. Your employer’s policy decides what you are paid.

Who can actually deduct mileage

The rates are the same for everyone, but who can use them on a federal return differs.

  • Self-employed people can deduct business miles on Schedule C. This lowers both income tax and self-employment tax. See the self-employment tax calculator.
  • W-2 employees generally cannot deduct unreimbursed business mileage. The deduction for miscellaneous itemized expenses was removed, and OBBBA made that permanent.
  • Employer reimbursements at or below the IRS rate under an accountable plan are not taxable income. Many employers use these rates as their reimbursement standard.
  • Medical miles count as a medical expense, which you can deduct only if you itemize and only the part above the medical expense floor.
  • Charity miles count as a charitable gift if you itemize. Our standard vs itemized guide explains when itemizing pays off.

A few more rules apply to business use. For a car you own, you generally must choose the standard rate in the first year you use it for business. For a leased car, you must use it for the whole lease. About 35¢ of the 2026 business rate is treated as depreciation. Commuting from home to a regular workplace is not business mileage. The IRS covers car expenses in Publication 463.

What this calculator doesn’t include

  • The actual expense method, which tracks real costs instead of a rate.
  • Parking fees and tolls, which can be deducted on top of the business rate.
  • Rates for any year other than 2026.
  • The medical expense floor and other limits on itemized deductions.
  • State rules for mileage deductions or reimbursement.
  • Fixed-and-variable rate (FAVR) reimbursement plans.

The total is an estimate of what your miles are worth at IRS rates. To see how a business deduction changes your income tax, enter your lower profit in the federal income tax calculator.

Frequently asked questions

What is the IRS mileage rate for 2026?

For business driving, the rate is 72.5 cents per mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026. The medical and military moving rate is 20.5 cents, then 23.5 cents. The charity rate is 14 cents all year.

Why are there two mileage rates in 2026?

The IRS raised the business and medical rates partway through the year, effective July 1, 2026. Miles driven before July 1 use the original rates and miles driven on or after July 1 use the higher ones. The date of the trip decides the rate.

Can W-2 employees deduct mileage in 2026?

Generally no. Unreimbursed employee business expenses, including mileage, are no longer deductible on federal returns, and OBBBA made that permanent. Employees can still be reimbursed tax-free by an employer under an accountable plan at or below the IRS rate.

Is mileage reimbursement taxable income?

Reimbursement under an accountable plan, at or below the IRS standard rate, is generally not taxable. An accountable plan requires a business purpose, adequate records and return of any excess. Amounts paid above the rate or without records can be taxable wages.

How do I calculate my mileage deduction?

Multiply your business miles by the IRS rate in effect when you drove them. For 2026, that is 72.5 cents for January through June and 76 cents for July through December. For example, 4,000 miles in the first half and 5,000 in the second half come to $6,700.

Official sources

Last reviewed November 3, 2026. Found an error? Tell us — we check every report.