IRS Notice 2026-10 · Announcement 2026-11 · IRC §162 / §170(i)
IRS Mileage Deduction Calculator (2025 & 2026)
2026 is a split-rate year. Miles driven Jan 1 – Jun 30 use 72.5¢ for business; miles driven Jul 1 – Dec 31 use 76¢. Enter each half separately for an accurate deduction.
What is the 2026 IRS standard mileage rate?
For 2026 the IRS set two business rates: 72.5¢ per mile for trips driven January 1 through June 30 (Notice 2026-10), then 76¢ per mile for trips on or after July 1 (Announcement 2026-11 / 2026-29 I.R.B. 49). Medical and PCS-military moving rates went from 20.5¢ to 23.5¢ on the same date. The charitable rate stays at 14¢ all year — it's set by statute. For a full year of 20,000 business miles you're looking at a $14,850 deduction using the standard rate.
- H1 2026 business rate: 72.5¢/mile (Jan 1 – Jun 30)
- H2 2026 business rate: 76¢/mile (Jul 1 – Dec 31)
- Charitable rate is 14¢/mile all year — fixed by 26 U.S.C. §170(i)
- W-2 employees can NOT deduct unreimbursed business mileage (OBBB made this permanent)
- Medical miles only help if you itemize AND medical expenses exceed 7.5% of AGI
- Same rate for gas, hybrid, and fully-electric vehicles
Your miles
Business miles (Schedule C / self-employed)
Medical miles (Schedule A only — 7.5% AGI floor)
Military PCS moving miles (active-duty Armed Forces under PCS orders only)
Eligibility — who can actually take this
- W-2 employees cannot deduct unreimbursed business mileage. TCJA suspended this and OBBB made the suspension permanent. Exceptions: Armed Forces reservists, qualified performing artists, and fee-basis state/local government officials.
- Business mileage is for self-employed filers reporting on Schedule C (or Schedule F for farmers). Track every trip with a contemporaneous log.
- Medical miles only produce a deduction if you itemize AND total medical expenses exceed 7.5% of AGI.
- Moving miles only for active-duty military under PCS orders (plus certain intelligence-community moves).
Standard mileage vs. actual expenses
If you own the car, you must use the standard mileage rate in the first year the car is available for use in your business (not the year you bought it) to keep the option of switching later. If you start with actual expenses instead, that car can't use the standard rate later. For a leased car, you must use the standard rate for the entire lease. If you switch from the standard rate to actual expenses, the car is depreciated straight-line from then on.
Actual expenses can win for expensive vehicles or heavy business use — depreciation on a $60,000 SUV alone can dwarf the standard rate. The 2026 business rate embeds a 35¢/mile depreciation component (Notice 2026-10) that reduces basis when you sell.
Not the same as the OBBB car loan interest deduction — that's a separate below-the-line deduction on Schedule 1-A for interest paid on a US-assembled vehicle loan.
Total 2026 mileage at IRS standard rates
Business miles are a Schedule C deduction. Medical and charitable miles only count if you itemize, and medical miles only within medical expenses above 7.5% of AGI. Military moving miles go on Form 3903.
Business
$14,850- 10,000 × $0.725 (Jan 1 – Jun 30)$7,250
- 10,000 × $0.760 (Jul 1 – Dec 31)$7,600
How the split-year math works
For each period the deduction is simply miles × rate. In 2026, that means running two calculations for business and medical categories and adding them together. Charitable never splits — it's a single 14¢ statutory rate.
- Jan 1 – Jun 30: business 72.5¢, medical 20.5¢, charitable 14¢ — IRS Notice 2026-10
- Jul 1 – Dec 31: business 76¢, medical 23.5¢, charitable 14¢ — IRS Announcement 2026-11 (2026-29 I.R.B. 49)
Frequently asked questions
- Why are there two different 2026 mileage rates?
- The IRS raised the business, medical, and moving rates mid-year — from 72.5¢ to 76¢ for business — effective July 1, 2026, to reflect the rising cost of fuel. Notice 2026-10 set the H1 rates; Announcement 2026-11 raised the H2 rates. The charitable rate stayed at 14¢ because it's fixed by statute (26 U.S.C. §170(i)).
- Which rate do I use for a trip driven on July 15, 2026?
- The H2 rate — 76¢ per business mile. Any mile driven on or after July 1, 2026 uses the higher rates. Keep a mileage log that captures the date of each trip so you can split H1 vs H2 miles cleanly.
- Can W-2 employees deduct unreimbursed business mileage?
- No. TCJA suspended the miscellaneous itemized deduction for unreimbursed employee business expenses, and OBBB made that suspension permanent. The only W-2 exceptions are Armed Forces reservists (Form 2106), qualified performing artists, and fee-basis state or local government officials. Everyone else needs an employer reimbursement (accountable plan).
- Do EVs and hybrids get the same standard mileage rate?
- Yes. The IRS standard mileage rate applies equally to gasoline, hybrid, and fully electric vehicles. If your electricity or maintenance costs are unusually high, run the actual-expense method separately — but for a car you own, you must use the standard rate in the first year the car is available for use in your business to keep the option to switch later (for a leased car, for the whole lease).
Sources & References
Primary references used for this content
2026 Standard Mileage Rates (H1)
Business 72.5¢, medical/moving 20.5¢, charitable 14¢ — depreciation component 35¢/mile
View on irs.gov
Mid-Year Increase in Standard Mileage Rates (2026-29 I.R.B. 49)
Business raised to 76¢, medical/moving to 23.5¢, effective July 1, 2026
View on irs.gov
Charitable mileage rate (statutory)
Fixed at 14¢/mile — only Congress can change it
View on law.cornell.edu
2025 Standard Mileage Rates
Business 70¢, medical/moving 21¢, charitable 14¢
View on irs.gov
TCJA employee-business-expense suspension made permanent
W-2 unreimbursed mileage remains non-deductible
View on congress.gov
✓5 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.