IRS mileage rate 2026, and how to deduct it
For 2026, the IRS business mileage rate is 72.5 cents a mile from January through June and 76 cents from July 1. You need a log showing the date, destination, purpose and miles for each trip. Commuting doesn't count. Parking and tolls are deductible on top of the rate.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- Jan to Jun 2026. 72.5 cents per business mile
- From Jul 1, 2026. 76 cents per business mile
- You need. Date, destination, purpose and miles
What counts as a business mile?
| Trip | Deductible? |
|---|---|
| Office to client | Yes |
| Between two job sites | Yes |
| Bank or supply run for the business | Yes |
| Home to regular office | No, that's commuting |
| Home to client, with a qualifying home office | Generally yes |
| Personal errand on the way | No, only the business part |
If you've got a qualifying home office, trips from it are usually business trips, because you're leaving your place of business.
What's the standard rate worth?
The IRS raised the 2026 business rate partway through the year because fuel costs rose, so it's two rates in one year. Say you drove 6,000 business miles from January to June and 6,000 from July to December. That's $4,350 plus $4,560, or $8,910 before parking and tolls.
Standard rate or actual costs?
You can use the standard rate or deduct the business share of your actual costs, like gas, repairs, insurance and depreciation. Actual costs can win for expensive or heavy vehicles. The standard rate is simpler and tends to win for efficient cars. If you own the car and want the standard rate, you generally have to choose it in the first year you use the car for business. Either way, you need your total miles. You can't use the standard rate if you run five or more vehicles at once.
What does a mileage log need?
For each trip, record the date, where you went, why and the miles. An app can do this from your phone, or a spreadsheet works if you fill it in as you go. Note your odometer at the start and end of the year. Log entries built months later from memory are the first thing an examiner questions. Vehicle deductions get specific attention from the IRS.
What about S-Corp owners?
If your S-Corp owns the car, the rules differ. If you own the car, the company can reimburse you at the IRS rate through an accountable plan. You don't report the reimbursement as income, and the company deducts it. Buying a heavier vehicle? Read about Section 179 and bonus depreciation first.
Sources
General information, not tax advice for your situation.
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See our business tax returns serviceWhat is the IRS mileage rate for 2026?
72.5 cents per business mile from January 1 through June 30, 2026, and 76 cents from July 1, 2026.
Can I deduct mileage if I'm a W-2 employee?
Not on your federal return. Ask your employer for reimbursement instead.
Can I claim mileage and gas?
Not both. The standard rate already covers gas, though parking and tolls can be added.
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