The 2026 rates
For tax year 2026, the IRS standard mileage rates (Notice 2026-10) are:
| Purpose | 2026 rate | 2025 rate |
|---|---|---|
| Business | 72.5¢ / mile | 70¢ / mile |
| Medical (and qualified military moving) | 20.5¢ / mile | 21¢ / mile |
| Charitable | 14¢ / mile | 14¢ / mile |
The business rate is the one most people mean. The charity rate never moves — it's set by statute, not by the IRS — and the medical rate applies only in narrower situations (itemized medical travel above the AGI floor).
What the 72.5 cents actually covers
The standard mileage rate is the IRS's all-in estimate of what a mile of driving costs: gas, oil, maintenance, tires, repairs, insurance, registration, and — the piece people forget — depreciationof the vehicle itself. That's why it's much higher than what you spend on fuel alone, and why taking it usually beats guessing.
Two costs are not baked in and are deductible on top of the rate: parking fees and tolls paid for business trips. Log those separately with receipts.
The math, concretely
A deduction reduces the income you're taxed on, not your tax bill directly. Example: you drive 10,000 business miles in 2026.
- Deduction: 10,000 × $0.725 = $7,250 off your business profit.
- If you're self-employed, that income would have been hit by both income tax and ~15.3% self-employment tax — so depending on your bracket, that $7,250 deduction is commonly worth $2,000–$3,000 in actual cash.
Roughly: every business mile puts about 20–30 cents back in your pocket. Miss 2,000 miles of logging and you've tipped the IRS several hundred dollars.
Rates can change mid-year — date matters
The IRS usually announces the new rate each December, effective January 1. But it has made mid-year changes when costs spike (it happened in 2022). The rule is always: a trip is valued at the rate in effect on the date you drove it, which is why a proper log records the date of every trip — and why a good mileage app applies rates by effective date instead of one number for the whole year. (Odo ships the IRS table exactly this way, and each trip is valued at the rate in force on its date.)
Who can use the standard rate
- Self-employed people and gig workers — on Schedule C, for the business-use portion of a car you own or lease.
- W-2 employees generally cannot deduct unreimbursed job mileage on federal returns (suspended since 2018) — though your employer can reimburse you tax-free at the IRS rate, and some states still allow a state-level deduction.
There's one timing trap: if you ever want the option to switch between the standard rate and actual expenses, you generally must use the standard rate in the first year the car is used for business.
What you must keep to claim it
The rate is only half the deduction; the other half is proof. The IRS requires a log with the date, destination, business purpose, and miles for each trip, recorded at or near the time you drove. See our guide to what the IRS actually accepts as a mileage log for the specifics.