IRS Mileage Guide
Last Updated: July 17, 2026
Looking for the latest IRS mileage rate? You’ve come to the right place! We’ll break down the 2026 and 2025 mileage rates, explain who can use them, and show you how to maximize your mileage tax deduction. Whether you’re a small business owner, a freelancer, or a dedicated volunteer, understanding these rates is key to saving money.
Table of Contents
IRS Mileage Rates at a Glance
The IRS updates its standard mileage rates each year, and 2026 brings some important changes. These rates cover the cost of operating a vehicle for business, charitable, medical, or moving purposes. Knowing them is crucial for proper tax planning and reimbursement.
For 2026, the IRS first set mileage rates effective from January 1. It later announced a mid-year increase for business, medical, and qualified moving mileage to reflect rising fuel costs. The revised rates apply beginning July 1, 2026.
Mileage Rates From January 1 Through June 30, 2026
- Business use: 72.5 cents per mile – This rate is essential for self-employed individuals and small business owners looking to reduce their taxable income. It is intended to account for eligible business-related vehicle costs.
- Charitable purposes: 14 cents per mile – This rate is set by statute, meaning Congress would need to change the law for it to increase. Volunteers may be eligible to deduct qualifying drives for charitable purposes.
- Medical or qualified moving purposes: 20.5 cents per mile – Medical mileage may qualify in certain circumstances. Moving expenses are generally limited to eligible active-duty members of the Armed Forces and certain members of the intelligence community.
Mileage Rates From July 1 Through December 31, 2026
- Business use: 76 cents per mile – An increase of 3.5 cents per mile compared with the rate in effect from January through June.
- Charitable purposes: 14 cents per mile – This rate remains unchanged throughout 2026.
- Medical or qualified moving purposes: 23.5 cents per mile – An increase of 3 cents per mile compared with the first-half rate.
Comparing the IRS Mileage Rates of 2025 and 2026
To give you a clearer picture, here’s how the 2026 IRS mileage rates compare with the 2025 rates:
| Purpose | 2025 Mileage Rate (January 1–December 31) | 2026 Mileage Rate (January 1–June 30) | 2026 Mileage Rate (July 1–December 31) |
| Business | 70 cents | 72.5 cents | 76 cents |
| Charitable | 14 cents | 14 cents | 14 cents |
| Medical / Qualified Moving | 21 cents | 20.5 cents | 23.5 cents |
As you can see, the largest mid-year change is the business mileage rate, which rose by 3.5 cents per mile beginning July 1, 2026. The medical and qualified moving rate rose by 3 cents, while the charitable rate remained unchanged. See historical rates on the IRS’s website. Or check out this overview:
What Expenses Does The Business Mileage Rate Cover?
The business mileage rate covers the variable costs for vehicle operation, such as:
- gasoline
- oil
- tires
- maintenance
- repairs
They also account for the following fixed costs for business vehicle operation:
- insurance
- registration
- depreciation
- leasing
The same tariffs apply to all passenger cars, including cars, vans, pickups, and panel vans. Note that the IRS mileage rates do not cover the cost of parking and tolls. They may be deducted separately. Furthermore, these rates are set federally, so they are the same amount throughout the U.S.
Here’s a video breakdown of everything you need to know about standard mileage rates.
How the IRS Sets Mileage Rates
The IRS mileage allowance is based on cost data and analysis that Motus compiles and sends out to the IRS. Motus uses data from the whole country and measures gas/oil prices, service costs, automobile insurance premiums, travel expenses, depreciation, and other costs included in operating and maintaining a car.
The IRS looks at several things when setting the mileage rates:
- Fuel prices and how cars use fuel
- How much value cars lose over time
- Insurance costs
- Maintenance expenses
For charity purposes, the standard mileage rate is based on the minimum value established by federal law. It is meant to compensate taxpayers for expenses they usually pay out of their pocket and are not reimbursed for by anyone else but the IRS.
The Right Tool to Secure Claiming Those Rates
Understanding the IRS mileage allowance and eligibility is only half the battle. The other half, and arguably the more critical one for your tax return, is mileage tracking. An accurate and compliant mileage log is crucial to secure and maximize your mileage deduction.
This is where MileageWise shines.
Mobile App for Effortless Mileage Logging
- Smart Auto-Tracking: Capture every drive automatically with customizable tracking options.
- Ad-Free & Privacy-First: No distractions or worries. Your data stays yours, and your app stays clean.
- Reliable Trip Start Detection: Our backup system ensures the start of every drive is logged, even though other apps often miss it.
- Custom Route & Distance Options: Choose between actual routes or optimized distance calculation.
Web Dashboard for Missed Mileage
- Google Timeline Import: Bring in your Google Maps Location History to automatically recover trips you forgot to track.
- Advanced Trip Management: Organize, filter, and edit trips in bulk, set custom categories, and set recurring trips with ease.
- Bulk Trip & Client Import: Upload entire client lists or import routes all at once. Perfect for busy professionals managing recurring drives or large fleets.
Customer Support That Gets the Mileage Game
Whether you’re new or prepping for tax time, our support team understands your needs. Expect fast, practical help — not endless response times or robotic answers.
Try MileageWise for free for 14 days. No credit card required!
Automatic Mileage Tracker App
A Courier’s Success Story with MileageWise
Before MileageWise, mileage tracking was my biggest headache. As a DoorDash courier, I spent hours on the road but never had a reliable system to log my drives. I knew the 2026 IRS mileage rate could lead to big deductions, but my notes were scattered and my logs incomplete. Every April, I stressed over missed write-offs and dreaded the thought of an audit.
Then I found MileageWise. By importing my Google Maps Timeline history, I recovered unlogged trips from last year in minutes. I then started to use their app to never miss my miles again. Suddenly, mileage logging wasn’t a burden. Now I claim every mile with confidence, knowing I’m getting the deduction I deserve.
Summary and Final Steps
Understanding the IRS mileage rate is your first step. Turning that knowledge into significant tax savings requires action.
By leveraging the right tools, you can confidently claim your deductions and keep more of your hard-earned money.
FAQ
What are the IRS mileage rates?
For 2026, there are two sets of IRS standard mileage rates:
Fron January 2026 to June 2026:
- Business use: 72.5 cents per mile
- Medical or moving purposes: 20.5 cents per mile
- Charitable organizations: 14 cents per mile
Fron July 2026 to December 2026:
- Business use: 76 cents per mile
- Medical or moving purposes: 23.5 cents per mile
- Charitable organizations: 14 cents per mile
Who can use the IRS standard mileage rate?
Business owners, self-employed individuals, and employees using their vehicles for work (but not commuting), qualified active-duty military for moving, and volunteers for charitable organizations can use the standard rates when reporting expenses on their tax returns.
What expenses does the IRS mileage rate cover?
The IRS mileage allowance covers fuel, oil, repairs, tires, maintenance, insurance, registration, and depreciation of your vehicle.
Can I claim actual vehicle expenses instead of the standard mileage rate?
Yes. Taxpayers can choose to deduct actual vehicle expenses. This is beneficial if you have high expenses, as it may result in a larger deduction. You must choose one method per year, per vehicle.
How often does the IRS update the mileage rates?
Typically, the IRS updates the mileage rates yearly, but they have occasionally updated mid-year due to unusual fuel price fluctuations such as in 2022 and 2026.
