The 2026 mid-year rate increase
The IRS raised the business standard mileage rate in the middle of 2026 — the first mid-year adjustment since 2022, driven by higher vehicle operating costs. That means 2026 has two rates, and each trip is valued at the rate in effect on the day you drove it:
- Jan 1 – Jun 30, 2026: $0.725 per mile
- Jul 1 – Dec 31, 2026: $0.76 per mile
- 2025: $0.70 per mile
- 2024: $0.67 per mile
- 2023: $0.655 per mile
Practically, the split means your second-half miles are worth 3.5¢ more each — an extra $35 per 1,000 miles. It also means the common shortcut of "total 2026 miles × one rate" is simply wrong: it understates your deduction if the single rate used is the old one, and overstates it (an audit problem) if it's the new one. You need your miles split at July 1, which is why this calculator asks for them that way. Sources: IRS standard mileage rates and the IRS announcement of the 2026 rate.
Standard mileage vs. actual expenses
The standard mileage rate is one flat per-mile number that stands in for gas, maintenance, repairs, insurance, and depreciation — no receipts to keep, and for typical vehicles driven a lot for work it's usually the better deal. The actual-expense method instead deducts the business-use share of what your vehicle really cost you, which can come out ahead for expensive vehicles or low business mileage — but it requires tracking every cost all year. One real constraint: to use the standard rate on a car, you generally must choose it in the first year you use that car for business; after that you can switch between methods (with some depreciation limits). Neither method is universally better — if the numbers are close, the standard rate wins on simplicity.
What counts as a business mile?
Miles count when the trip itself has a business purpose:
- Driving between job sites, gigs, or work locations
- Driving to client meetings or customer visits
- Picking up supplies, inventory, or equipment
- Business errands — the bank, the post office, the accountant
Commuting does not count. Driving between your home and a regular workplace is personal, no matter how far it is or what's in the trunk — this is the single most common mileage-deduction error. (If your home is your principal place of business, trips from home to work sites can qualify — a fact-specific question worth asking a tax professional.)
FAQ
What is the IRS standard mileage rate for 2026?
There are two: $0.725/mile for trips driven Jan 1 – Jun 30, 2026 and $0.76/mile for trips driven Jul 1 – Dec 31, 2026. The IRS raised the rate mid-year — the first mid-year change since 2022.
How do I calculate my 2026 deduction with two rates?
Split your business miles by when you drove them: first-half miles × $0.725 plus second-half miles × $0.76. A single "total miles × one rate" number is wrong for 2026.
Does commuting count?
No. Home-to-regular-workplace driving is never deductible. Only trips with a business purpose — between job sites, to clients, for supplies — count.
What records do I need?
A contemporaneous log: date, miles, and business purpose for each trip. A year-end reconstruction is the first thing an audit challenges — automatic GPS tracking (like RevvFi's) creates the log as you drive.