Why the 2026 mileage rate changed on July 1
The IRS raised the business rate from 72.5¢ to 76¢ mid-year. Here's how to use both rates.
Updated September 28, 2026 · Not tax advice
The IRS normally sets the standard mileage rate once a year. In 2026 it changed it twice: 72.5 cents per mile for business driving from January 1, then 76 cents per mile from July 1, 2026, because fuel prices rose sharply in the first half of the year.
Which rate do I use?
Both, depending on when you drove:
| Miles driven | Rate |
|---|---|
| Jan 1 – Jun 30, 2026 | 72.5¢ per mile |
| Jul 1 – Dec 31, 2026 | 76¢ per mile |
For example, a driver with 7,000 business miles in each half of the year deducts:
- 7,000 × $0.725 = $5,075
- 7,000 × $0.76 = $5,320
- Total: $10,395
Our mileage deduction calculator splits the two periods for you and shows how much tax the deduction saves.
What your mileage log needs
Because the rate depends on the date, your log needs dates. For each trip, record:
- the date,
- the miles (or start and end odometer readings),
- where you went and the business purpose.
Most mileage apps export a yearly report that can be split by date range.
Does the change affect actual-expense users?
No. If you deduct actual car costs (gas, repairs, insurance, depreciation) instead of the standard rate, you use your real receipts. Nothing about the rate change applies.
What the rate covers
The standard rate is meant to cover all the costs of running a car: gas, oil, tires, repairs, insurance, registration and depreciation. You can’t deduct those separately on top of it. Business parking fees and tolls are still deductible in addition.