Standard Mileage Rate 2026: The Mid-Year Split Log
The 2026 IRS standard mileage rate has two business figures: 72.5¢ for Jan-Jun and 76¢ for Jul-Dec. See the split, other rates, and Schedule C math.
This article is for educational purposes only and is not tax, legal, or financial advice. Mileage rates and rules change, so confirm current figures with IRS guidance or a qualified tax professional before you file.
If you drive for work in 2026 and reach for last year’s shortcut (one mileage total times one rate) you will file the wrong number. This is one of the rare years where that math breaks.
The IRS raised the business standard mileage rate partway through 2026. So the same annual mileage log now carries two different rates depending on when each mile was driven. Miss the split and you either shortchange yourself or overstate the deduction.
The 2026 standard mileage rates at a glance (and why there are two)
The standard mileage rate is the flat cents-per-mile figure the IRS lets you deduct instead of tracking every gas receipt, oil change, and insurance payment. Multiply your business miles by the rate and you have your deduction.
For 2026 there is no single business rate. The IRS set 72.5 cents per mile in December 2025, then bumped it to 76 cents halfway through the year.
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢/mile | 76¢/mile |
| Medical | 20.5¢/mile | 23.5¢/mile |
| Moving (active-duty military only) | 20.5¢/mile | 23.5¢/mile |
| Charitable (fixed by statute) | 14¢/mile | 14¢/mile |
The first-half business rate of 72.5 cents came from IRS Notice 2026-10, up 2.5 cents from 2025. The second-half rate of 76 cents came from Announcement 2026-11, which modified that notice and took effect July 1, 2026.
Why the mid-year change? Fuel prices climbed sharply through the first half of the year, and the IRS responded with its first midyear rate adjustment since 2022. The rate that covers your driving depends on the date of each trip, not the date you file.
How the mid-year split changes your mileage log
In a normal year this is easy: you sum your business miles for the whole year and multiply once. Do that in 2026 and you land on the wrong Schedule C deduction, because the two halves of the year carry different rates.
The fix is to split your log at June 30 and run each half separately:
(miles driven Jan 1–Jun 30 × 72.5¢) + (miles driven Jul 1–Dec 31 × 76¢)
Say you drove 12,000 business miles in 2026, evenly across the year. That is 6,000 miles in each half.
- First half: 6,000 × 72.5¢ = $4,350
- Second half: 6,000 × 76¢ = $4,560
- Total deduction: $8,910
Multiply the full 12,000 by the January rate alone and you would claim $8,700, leaving $210 on the table. Use the July rate for the whole year and you would claim $9,120, overstating the deduction by $210. Neither figure matches what you actually drove.
If your log is not already broken out by date, reconstruct it from whatever record you kept: trip histories, calendar entries, delivery-app summaries, or a mileage-tracking app that timestamps each drive. The IRS expects a contemporaneous record showing the date, destination, business purpose, and miles for each trip. A clean split at midyear is far easier to defend than a single lump-sum estimate.
Medical, moving, and charitable rates: who can actually use them
The business rate gets the attention, but three other rates exist, and each has a narrow gate.
Medical mileage runs 20.5 cents per mile in the first half of 2026 and 23.5 cents in the second half. You can only use it if you itemize deductions, and only for unreimbursed medical travel that, combined with your other medical costs, exceeds 7.5% of your adjusted gross income. Most filers never clear that floor.
Moving mileage carries the same 20.5-cent and 23.5-cent figures, but since the 2017 tax law it applies only to active-duty members of the armed forces (and certain intelligence-community members) moving under orders. Everyone else lost the moving deduction.
Charitable mileage stays at 14 cents per mile all year. Congress sets this rate by statute, so it is not adjusted for inflation and does not move mid-year. It covers miles you drive in service of a qualified charity, such as delivering meals or driving to a volunteer site. Personal errands mixed into the trip do not count.
Standard mileage vs. actual expenses: the first-year election trap
You have two ways to deduct vehicle costs: the standard mileage rate, or actual expenses (gas, repairs, insurance, depreciation, lease payments, and the rest, prorated for business use). You cannot use both on the same vehicle in the same year.
The timing rule catches new drivers off guard. To use the standard mileage rate on a vehicle, you generally have to choose it in the first year you put that vehicle into business use. Claim actual expenses in year one instead, and you are usually locked out of the standard rate for that vehicle later.
The reverse is more forgiving. If you elect standard mileage in year one, you can switch to actual expenses in a later year. But once you have claimed depreciation under the actual-expense method, switching back to standard mileage is generally off the table. IRS Publication 463 spells out the details.
So when does actual expenses win? Usually with a new or expensive vehicle driven relatively few business miles, where depreciation and real costs outrun the flat per-mile figure. High-mileage drivers in older, paid-off cars tend to come out ahead with the standard rate. Run it both ways in year one, because that first choice sets your options for the life of the vehicle.
Deadhead miles: the deduction gig drivers leave on the table
Rideshare and delivery drivers routinely undercount their miles, and it costs them.
Platform apps typically log only your on-trip miles, the distance from pickup to drop-off with a passenger or order in the car. Your deductible business miles are broader than that. When the app is on and you are available for work, the miles between fares, the drive toward a busy zone, and the trip back after a drop-off generally count too. These “deadhead” miles often make up 30% to 40% of a driver’s total business driving.
Consider a driver who logged 20,000 on-trip miles in 2026 but actually drove 30,000 business miles once deadhead time is included, split evenly across the year. Leaning on the app’s on-trip figure alone understates the deduction by 10,000 miles. At the 2026 rates, that is roughly 5,000 miles at 72.5 cents plus 5,000 at 76 cents, about $7,425 in deduction left unclaimed.
The catch is documentation. You need your own log to support the miles the app did not record, so a mileage tracker that runs whenever you are working pays for itself. And one line stays firmly non-deductible: commuting from home to a regular workplace is personal mileage, no matter how far the drive.
How the mileage deduction flows into your Schedule C and SE tax
The mileage deduction is not just an income-tax break. For the self-employed it does double duty.
You report vehicle information and the deduction on Schedule C, Part IV. The deduction lowers your net business profit, and that lower profit then flows into two separate taxes at once.
First, it reduces your taxable income, cutting income tax at your marginal rate. Second, and easy to overlook, it shrinks the base for self-employment tax. Net earnings from self-employment are figured at 92.35% of your net profit, and the combined self-employment tax rate is 15.3% (12.4% for Social Security up to the 2026 wage base of $184,500, plus 2.9% for Medicare). You owe self-employment tax once your net earnings reach $400.
So every mile you correctly claim knocks down both taxes. A $1,000 mileage deduction removes $1,000 from the profit that feeds your income tax, and it trims self-employment tax on roughly $923 of net earnings as well. That double effect is exactly why an accurate, split-year log matters more for gig workers than for W-2 employees.
Tools like Tax47 let you enter your Schedule C figures and watch the estimated refund and self-employment tax update as you go, so you can see how a change in mileage moves the final number before you file. You can browse the full set of tax calculators or download the app to model it on your own return.
Sources & References
- IRS: Standard mileage rates — Official rates for both 2026 periods.
- IRS newsroom: 2026 business standard mileage rate set at 72.5 cents — First-half rate announcement (Notice 2026-10).
- Journal of Accountancy: IRS raises standard mileage rates for remainder of 2026 — Second-half increase to 76 cents (Announcement 2026-11).
- IRS Publication 463 — Travel, gift, and car expenses, including the standard-mileage election rules.
For related 2026 figures, see our guide to the 2026 federal tax brackets.
Estimates only. This article does not constitute tax, legal, or financial advice. Verify current mileage rates and eligibility rules with the IRS or a qualified tax professional before filing your 2026 return.
Frequently Asked Questions
What is the 2026 standard mileage rate for business?
There are two business rates in 2026. Miles driven January 1 through June 30 are worth 72.5 cents each. Miles driven July 1 through December 31 are worth 76 cents each. You apply both rates to the same annual log, split at June 30.
Why are there two business mileage rates in 2026?
The IRS issued a mid-year increase effective July 1, 2026, its first midyear adjustment since 2022, after fuel prices rose sharply during the year. The first-half rate of 72.5 cents came from Notice 2026-10; the second-half rate of 76 cents came from Announcement 2026-11, which modified that notice.
How do I split my mileage log for the 2026 rate change?
Total your business miles for January 1 through June 30 and multiply by 72.5 cents. Total your business miles for July 1 through December 31 and multiply by 76 cents. Add the two results. A single annual mileage total multiplied by one rate will give the wrong deduction.
What is the 2026 medical mileage rate, and what about moving?
The medical rate is 20.5 cents per mile for January 1 through June 30 and 23.5 cents per mile for July 1 through December 31. The moving rate matches those figures but is limited to active-duty members of the armed forces (and certain intelligence-community members) moving under orders.
What is the 2026 charitable mileage rate?
The charitable rate is 14 cents per mile for all of 2026. It is set by statute rather than adjusted for inflation, so it does not change mid-year. It applies only to miles driven in service of a qualified charity.
Can I switch from standard mileage to actual expenses, or back again?
To use the standard mileage rate on a vehicle, you generally must choose it in the first year you use that vehicle for business. After that you can switch from standard mileage to actual expenses in a later year, but switching from actual expenses back to standard mileage is generally not allowed once you have claimed depreciation. See IRS Publication 463.
Are deadhead miles between rides tax-deductible for gig drivers?
Yes. Miles driven while the app is on and you are available for work generally count as business miles, including driving between fares, heading to a busy zone, and returning from a drop-off. Personal commuting from home to a regular workplace is not deductible.
Where do I claim the mileage deduction on my tax return?
Self-employed filers report vehicle information and the mileage deduction on Schedule C, Part IV. The deduction reduces your net business profit, which in turn lowers both your income tax and your self-employment tax.