News release IR-2025-128, dated December 29, 2025, announced 72.5 cents per business mile from January 1, 2026, up 2.5 cents from 2025.
Source: irs.gov · checked 2026-09-28Standard mileage rate · tax year 2026
IRS mileage rate 2026: 72.5¢ through June, 76¢ from July 1
The IRS standard mileage rate for business driving in 2026 is 72.5 cents per mile for miles driven January 1 through June 30, and 76 cents per mile for miles driven on or after July 1, 2026. The IRS raised the rate mid-year in Announcement 2026-11, citing recent increases in the price of fuel. Medical and qualifying military moving miles are 20.5 cents for the first half and 23.5 cents for the second half; charitable miles stay at 14 cents, a figure fixed by statute. Each mile takes the rate in force on the day it was driven, so a 2026 log needs dates, not just a yearly total.
IRS business rate · 2026 72.5¢ → 76¢
Jan–Jun 2026: 72.5¢ per business mile
Jul–Dec 2026: 76¢ per business mile
All 2026 rates
Business, medical and charitable miles in 2026
| Period | Business | Medical / moving* | Charitable |
|---|---|---|---|
| Jan–Jun 2026 | 72.5¢ | 20.5¢ | 14¢ |
| Jul–Dec 2026 | 76¢ | 23.5¢ | 14¢ |
*Moving miles apply only to active-duty members of the Armed Forces. Cents per mile. Not tax advice.
Worked example
1,000 business miles in each period in 2026
The deduction is miles × the rate in force when the miles were driven. 2026 had a mid-year change, so each half is priced at its own rate — never an average.
Example · deduction for 2026 $1,485.00
1,000 mi · Jan–Jun 2026 × 72.5¢/mi = $725.00
1,000 mi · Jul–Dec 2026 × 76¢/mi = $760.00
From the IRS
What the IRS published for 2026
Notice 2026-10 (published in Internal Revenue Bulletin 2026-4) sets the 2026 rates and supersedes Notice 2025-5.
Source: irs.gov · checked 2026-09-28Announcement 2026-11, printed in Internal Revenue Bulletin 2026-29 on July 13, 2026, raised the business rate to 76 cents and medical/moving to 23.5 cents for miles on or after July 1, 2026. The IRS gave the reason as recent increases in the price of fuel.
Source: irs.gov · checked 2026-09-28Notice 2026-10 treats 35 cents per mile as depreciation for 2026, which reduces the car's basis. Announcement 2026-11 left all other provisions of Notice 2026-10 in effect.
Source: irs.gov · checked 2026-09-28For a fixed and variable rate (FAVR) allowance, the standard automobile cost may not exceed $61,700 in 2026; the same $61,700 is the maximum value for the cents-per-mile valuation of employer-provided cars first available in 2026.
Source: irs.gov · checked 2026-09-28The first-half rate of 72.5 cents is 2.5 cents above 2025's 70 cents; the second-half rate of 76 cents is 3.5 cents above the first half and 6 cents above 2025. Medical/moving fell half a cent to 20.5 cents in January, then rose 3 cents to 23.5 cents in July.
Source: irs.gov · checked 2026-09-28IR-2025-128 says the moving rate applies to certain active-duty members of the Armed Forces and, under the One, Big, Beautiful Bill, now certain members of the intelligence community.
Source: irs.gov · checked 2026-09-2814 cents per mile for the whole year; Announcement 2026-11 notes it is fixed under section 170(i) of the Internal Revenue Code, so the July change did not touch it.
Source: irs.gov · checked 2026-09-28Why 2026 has two business rates
The IRS normally sets one rate per calendar year. For 2026 it did that on December 29, 2025: IR-2025-128 and Notice 2026-10 put business driving at 72.5 cents per mile, up 2.5 cents from 2025, and trimmed the medical and military moving rate by half a cent to 20.5 cents. The business figure comes from an annual study of the fixed and variable costs of operating a car, while the medical and moving figure uses only the variable costs. In July the IRS reopened the number. Announcement 2026-11 modified Notice 2026-10 so that miles driven on or after July 1, 2026 are valued at 76 cents for business and 23.5 cents for medical and moving, and it attributed the change to recent increases in fuel prices. Miles driven before July 1 keep the Notice 2026-10 rates. The charitable rate did not move because it is written into the tax code at 14 cents. The practical result for 2026 returns: a mile has two possible prices depending on its date.
Applying the 2026 rate as a gig driver
Self-employed drivers can deduct business miles with the standard mileage rate instead of totalling actual costs such as fuel, repairs and insurance; the rate is optional. Publication 463 adds conditions: for a car you own, you must choose the standard mileage rate in the first year the car is used in your business, and for a leased car you must keep it for the whole lease. Business-related parking fees and tolls can be deducted on top of the rate. Driving between home and a regular place of work is commuting and is not deductible, which is why CatchMile keeps Commute as its own category next to Business and Personal. Publication 463 also expects a written record showing the miles for each business use and the total for the year. For 2026 that record needs dates on every trip, because the same 20-mile delivery run is worth $14.50 at 72.5 cents in June and $15.20 at 76 cents in July. None of this is tax advice; confirm your own situation with a tax professional.
Worked example with both 2026 rates
Say a driver logs 6,000 business miles from January through June and 5,500 business miles from July through December. The first-half miles are valued at 72.5 cents: 6,000 × $0.725 = $4,350.00. The second-half miles are valued at 76 cents: 5,500 × $0.76 = $4,180.00. The standard mileage amount for the year is $8,530.00, before any business parking or tolls. If the same 11,500 miles were priced at the January rate alone, the total would be $8,337.50, which is $192.50 lower; pricing all of them at 76 cents would give $8,740.00, which overstates the figure by $210.00. The depreciation part of the rate matters later if you sell the car or switch methods: Notice 2026-10 treats 35 cents of each business mile as depreciation, so these 11,500 miles reduce the car's basis by $4,025.00. CatchMile applies this split automatically, valuing each drive at the rate for its own date and showing miles × rate beside the dollar figure.
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IRS mileage rate 2026 — questions
Which rate applies to a drive on June 30, 2026 versus July 1, 2026?
A business mile driven on June 30 uses 72.5 cents; a mile driven on July 1 or later uses 76 cents. Announcement 2026-11 ties the new rate to expenses paid or incurred on or after July 1, 2026.
Did the charitable rate change in July 2026?
No. It stayed at 14 cents per mile all year because section 170(i) of the tax code fixes it; only the business and medical/moving rates were revised.
Is there an IRS news release for the July 2026 increase?
The IRS rate table cites Internal Revenue Bulletin 2026-29, where Announcement 2026-11 appears. We did not find a separate newsroom release for the July change when checking irs.gov on September 28, 2026.
Why is 2026 medical mileage 20.5 cents and then 23.5 cents?
Notice 2026-10 lowered medical and moving mileage by half a cent from 2025 to 20.5 cents, then Announcement 2026-11 raised it by 3 cents to 23.5 cents for miles on or after July 1, 2026.
Does CatchMile know about the July 2026 rate change?
Yes. CatchMile values each drive at the IRS rate in force on that drive's date, 72.5 cents through June 30 and 76 cents from July 1, and shows the miles × rate calculation next to each dollar value.
