IRS mileage rate for 2026
| Period | Business rate |
|---|---|
| 1 January to 30 June 2026 | 72.5 cents a mile |
| 1 July to 31 December 2026 | 76 cents a mile |
| 2025, for comparison | 70 cents a mile |
Your 2026 mileage deduction
$0
0 business miles
| January to June at 72.5 cents | $0 |
| July to December at 76 cents | $0 |
| Total deduction | $0 |
What the rate already includes
The standard rate is not a fuel allowance. It is meant to cover the whole cost of running the vehicle, which is why you cannot claim these separately on top of it.
- Fuel
- Maintenance and repairs
- Insurance
- Registration and licensing
- Depreciation, or your lease payments
You can still claim parking and tolls for a business trip on top, because those are not part of running the vehicle.
Standard rate or actual expenses
You pick one per vehicle, and for a service business the standard rate usually wins on effort alone. Actual expenses can beat it if the vehicle is expensive to run and you drive relatively few miles, which describes a large truck doing local work more than it describes a van covering a route.
| Standard rate | Actual expenses | |
|---|---|---|
| What you track | Miles and purpose | Every receipt, plus the business use percentage |
| Usually better when | You drive a lot in a reasonably economical vehicle | The vehicle is costly and mileage is low |
| Effort | Low | High |
| Switching later | Restricted. Ask your accountant before you change method | Restricted |
The commuting rule that catches service businesses
Home to a regular workplace is commuting and does not count. Between job sites during the day does. That sounds simple until you notice most of a service business day is the second thing.
If you have a qualifying home office that is genuinely your principal place of business, the first trip of the day can become deductible rather than a commute. That single point moves the number a lot over a year, and it has real conditions attached, so it is worth asking your accountant about specifically rather than assuming either way.
The log is the part people lose on
A deduction without records is the easiest thing in the world for an examiner to remove. You need the date, the miles, where you went and why. Reconstructing twelve months from memory the week before filing is exactly the pattern that gets disallowed.
Log it on the job sheet
Our daily job sheet already captures the date, the customer and the address for every visit. Adding a mileage line to it means the log builds itself as a by-product of work you are already recording.
Planning figures, not tax advice
Rates are published by the IRS and the arithmetic here is straightforward, but what counts as a business mile depends on facts we cannot see. Confirm with your accountant before filing.
Common questions
What is the IRS mileage rate for 2026?
2026 has two. It was 72.5 cents a mile from 1 January to 30 June, then rose to 76 cents from 1 July to 31 December. The IRS normally sets one rate for the whole year and only changed it because fuel costs moved, so a lot of published pages still show 72.5 for the whole year.
Which rate do I use for a trip?
The rate in force on the day you drove, not the day you file. Miles driven in March use 72.5 cents and miles driven in September use 76 cents, on the same tax return.
Can I claim mileage and fuel and repairs?
No. The standard rate already includes fuel, maintenance, insurance, registration and depreciation. You pick either the standard rate or actual expenses for a vehicle, and you cannot mix them for the same vehicle in the same year.
Does driving to my first job of the day count?
Usually not. Travel between home and a regular workplace is commuting and is not deductible. Travel between job sites during the day is. If you have a qualifying home office that is your principal place of business, the first trip out can count, which is worth asking your accountant about because it changes the number a lot for a service business.
Do I have to keep a log?
Yes, and it is the part people lose on. You need the date, the miles, the destination and the business purpose. Reconstructing a year from memory in April is exactly what gets disallowed, so log it as you go.