Tax year 2026 is unusual for one of the most-used deductions in the code: the IRS changed the standard mileage rate in the middle of the year. If you or your clients drive for business, the rate that applies depends on when the miles were driven — and getting that split wrong is an easy way to over- or under-claim the deduction.
Here is what changed, who can use the standard mileage rate, and how to keep records that survive a question from the IRS. All figures below are U.S. federal rules for tax year 2026.
The 2026 rates, before and after July 1
The IRS set the original 2026 rates in Notice 2026-10, then revised them effective July 1, 2026, citing fuel price increases. The current rates published on the IRS standard mileage rates page:
| Use | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business (self-employed) | 72.5¢ / mile | 76¢ / mile |
| Medical — and moving for active-duty military | 20.5¢ / mile | 23.5¢ / mile |
| Charitable (fixed by statute) | 14¢ / mile | 14¢ / mile |
Two practical consequences:
- A 2026 return needs two mileage subtotals. Miles driven January through June multiply by the first-half rate; miles from July onward use the higher rate. A single annual total × one rate is wrong for 2026.
- The charitable rate never moved. It is set by statute, not by the IRS, so it stays at 14 cents regardless of fuel prices.
Who can use the standard mileage rate
The standard mileage rate is an option, not an obligation, and it is mostly a self-employed benefit:
- Self-employed taxpayers (Schedule C, including gig drivers) can choose between the standard mileage rate and actual vehicle expenses. Publication 463 covers the eligibility details — for example, to use the standard rate on a car you own, you generally must choose it in the first year the car is available for business use.
- W-2 employees generally cannot deduct commuting or unreimbursed business miles on their federal return under current law. The exceptions are narrow (certain armed forces reservists, qualifying performing artists, fee-basis government officials). Employers can instead reimburse employees at the IRS rate tax-free under an accountable plan.
- Medical miles count toward the medical expense itemized deduction (subject to its AGI floor); moving miles are deductible only for active-duty military moving under orders.
Standard rate vs. actual expenses
The standard rate bundles gas, depreciation, insurance, repairs, and maintenance into one per-mile figure. Actual expenses deduct the business-use share of each real cost instead. Quick heuristics preparers use:
- High-mileage, fuel-efficient vehicles → the standard rate often wins.
- Expensive vehicles with heavy depreciation, or low annual mileage → actual expenses are worth running.
- The only honest answer is to compute both in year one, because the first-year choice constrains later years (switching from actual MACRS depreciation to the standard rate is restricted).
Records that hold up
For either method, the deduction lives or dies on the mileage log. For each business trip, record the date, destination, business purpose, and miles. Contemporaneous logs — written at or near the time of the trip, whether in an app or a notebook — carry far more weight than a year-end reconstruction. For 2026 specifically, make sure your log can produce separate January–June and July–December totals.
What this looks like in practice
A rideshare driver with 9,000 business miles in the first half of 2026 and 11,000 in the second half deducts:
- 9,000 × $0.725 = $6,525
- 11,000 × $0.76 = $8,360
- Total: $14,885 — versus $14,440 if the whole year were (incorrectly) computed at 72.5¢, or $15,200 at 76¢. The split matters in both directions.
Where TaxSentry fits
Mid-year rate changes are exactly the kind of detail that generic AI tools answer with stale numbers. TaxSentry's answers are grounded in the IRS documents themselves — Notice 2026-10 and the IRS mileage-rate updates are in its knowledge base with their effective dates — and every answer cites the source it came from, so you can verify the rate before it goes on a return.
If you prepare returns with vehicle deductions, see also our guide to hiring your child in a family business and the key tax year 2026 figures.