2026 IRS mileage rate
IRS mileage rate 2026: 76¢ per mile from July 1
The current IRS business mileage rate is 76¢ per mile. It increased from 72.5¢ on July 1, 2026, so trips from the first and second halves of the year use different rates.
Updated Aug. 25, 2026 · Federal IRS guidance · Not tax advice
The midyear change
Two business mileage rates apply in 2026
Use the rate that applies when the qualifying business transportation expense was paid or incurred. For most mileage tracking, that makes the trip date essential.
| 2026 period | Business / self-employed | Medical / qualifying moving | Charity |
|---|---|---|---|
| Jan. 1–Jun. 30 | 72.5¢/mile | 20.5¢/mile | 14¢/mile |
| Jul. 1–Dec. 31 | 76¢/mile | 23.5¢/mile | 14¢/mile |
The revised July rates apply to deductible business, medical and qualifying moving transportation expenses paid or incurred on or after July 1, 2026. Eligibility rules differ by purpose; charity remains 14¢ per mile.
How the 2026 IRS mileage rate works
The standard mileage rate is an optional way to calculate qualifying vehicle costs. In 2026, the business rate changed midyear, so a single annual mileage total is not enough to calculate the amount correctly if you drove for business both before and after July 1.
2026 business mileage examples
500 miles in March
500 × $0.725 = $362.50.
500 miles in August
500 × $0.76 = $380.00.
500 miles in June + 500 in July
$362.50 + $380.00 = $742.50.
Do not apply one rate to the entire year. A June business trip and a July business trip fall on different sides of the 2026 rate change.
Calculate a 2026 mileage amount by trip date →
Does the IRS mileage rate apply to a Tesla?
Yes. IRS guidance explicitly says the standard mileage rates apply to fully electric and hybrid automobiles as well as gasoline and diesel vehicles. For the standard mileage method, the calculation is based on qualifying miles rather than the car's fuel type.
What should a business mileage log contain?
IRS Publication 463 says records for car expenses should support the date of use, business destination, business purpose, mileage for each business use, and total miles for the year. A computer-prepared record can be an adequate written record, and a record made at or near the time of the trip generally carries more weight than one reconstructed later.
Trip facts
- Date of use
- Business destination
- Mileage for each business use
- Total annual mileage
Business context
- Business purpose
- Supporting documentation where required
- Records kept while details are fresh
That is where automatic Tesla trip data can reduce manual work: capture the factual journey first, then review and classify the business purpose while the context is still fresh. See our mileage log for taxes guide for the record-keeping workflow.
Standard mileage rate vs. actual vehicle expenses
The IRS standard mileage rate is optional. Eligible taxpayers may instead calculate the actual costs of using a vehicle for business.
For an owned vehicle, choosing the standard mileage method in the first year the car is available for business use preserves the option to switch methods in later years. If you use the standard mileage rate for a leased vehicle, IRS rules generally require using that method for the entire lease period, including renewals.
For a fuller comparison, see standard mileage vs. actual vehicle expenses.
Employee reimbursement is different from a mileage deduction
An employer can reimburse qualifying business mileage, but that does not mean every employee can claim unreimbursed mileage as a federal tax deduction. Federal law now permanently disallows the miscellaneous itemized deduction for unreimbursed employee travel expenses, with limited exceptions for certain eligible taxpayers. Self-employed taxpayers can generally deduct qualifying business vehicle expenses through their business return.
If you are setting up or checking an employer policy, see our separate business mileage reimbursement guide.
Official IRS sources
FAQ
IRS mileage rate 2026: common questions
What is the current IRS mileage rate for business in 2026?
The business standard mileage rate is 76¢ per mile for qualifying business transportation expenses paid or incurred from July 1 through Dec. 31, 2026. It was 72.5¢ per mile from Jan. 1 through June 30.
Why are there two IRS business mileage rates in 2026?
The IRS revised the 2026 business standard mileage rate effective July 1. The IRS said the midyear change resulted from recent increases in fuel prices.
Does the IRS mileage rate apply to a Tesla or other electric car?
Yes. IRS guidance says the standard mileage rates apply to fully electric and hybrid automobiles as well as gasoline and diesel vehicles.
What mileage records should I keep for business driving?
Publication 463 says car-expense records should support the date of use, business destination, business purpose, mileage for each business use, and total miles for the year. Computer-prepared records can qualify as adequate written records.
Can employees deduct unreimbursed business mileage in 2026?
Generally no. Federal law permanently disallows the miscellaneous itemized deduction for unreimbursed employee travel expenses, with limited exceptions for certain eligible taxpayers. Employer reimbursement rules are separate.
The rate is simple. Keeping the trips behind it is the real work.
DriveQuery turns Tesla trip data into a mileage record you can review, classify and keep while the details are still fresh.