IRS Mileage Rate 2026: Get Paid for Every Mile You Drive

If you use your personal vehicle for business, medical, or charitable purposes, the IRS allows you to deduct a specific amount for every mile driven. For 2026, the Standard Mileage Rate for business has been officially set at 72.5 cents per mile. This rate covers gas, insurance, repairs, and depreciation in one simple calculation. Here are the official rates and the strict logbook rules you must follow.

BMT Tax Team BMT Tax Team · 📅 Feb 2026 · ⏱️ 5 min read · TAX TIPS › DEDUCTIONS
Biz Rate
72.5¢
Per Mile (2026)Fact
Medical
20.5¢
DecreasedFact
Proof
Log
Written RecordRule

1. The Rule: Standard vs. Actual

You generally have two ways to calculate your car deduction.

The Two Methods
1. Standard Mileage Rate (Easy): You multiply [Business Miles] × [72.5 cents]. This covers gas, insurance, repairs, and depreciation. You cannot deduct gas separately.
2. Actual Expenses (Hard): You track every single receipt for gas, insurance, and repairs, then multiply by the [% of Business Use].

2. Official 2026 Rates (Checklist)

Use the correct rate for your specific activity.

Category Rate (2026) Who Qualifies?
Business 72.5 cents Self-employed, Gig workers (Uber/DoorDash).
Medical 20.5 cents Driving to doctors/hospitals (Itemizers only).
Moving 20.5 cents Active Duty Military on PCS orders only.
Charity 14 cents Volunteers driving for non-profits.

3. Timeline: The “Audit” Carryover

Mileage doesn’t roll over, but the risk does. If you don’t log it today, you can’t prove it 3 years from now.

Time Status Risk Level
Day of Trip Active
Must Log Mileage
Filing Date Filed
Deduction Claimed
+3 Years Safe
Audit Window Closes
Planning Note
If you drive for business, it is generally critical to use a mileage tracking app (like MileIQ) to automatically generate the IRS-compliant logs required to survive a potential audit.

4. Strategy: The “First Year” Rule

How you file in Year 1 determines your future options.

  • The Strategy: You generally must use the Standard Mileage Rate (72.5¢) in the first year you use a car for business.
  • The Flexibility: In later years, you can switch back and forth between Standard and Actual expenses.
  • The Mistake: If you use “Actual Expenses” in Year 1, you are stuck with that method for the life of the car. You cannot switch to Standard Mileage later.

5. Warning: The Commuting Rule

Driving to work is personal, not business.

⛔ Home to Office = $0

The IRS is strict on “Commuting Miles.”

  • Commuting: Drive from Home ➔ Main Office. (Not Deductible).
  • Business: Drive from Office ➔ Client Site. (Deductible).
  • Temporary: Drive from Home ➔ Temporary Work Site (e.g., distant client). (Deductible).
  • Home Office: If your home is your principal place of business, driving from Home ➔ Client Site is deductible.

6. Frequently Asked Questions

What about parking and tolls?
Yes. You can deduct business-related parking fees and tolls in addition to the 72.5 cents per mile rate. They are separate line items.
Can W-2 employees claim mileage?
Generally, no. Under current federal law (TCJA), employees cannot deduct unreimbursed business mileage. This deduction is primarily for self-employed individuals.