2026 IRS business mileage rates
| Period | Business rate |
|---|---|
| January 1 – June 30, 2026 | 72.5¢ a mile |
| July 1 – December 31, 2026 | 76¢ a mile |
| 2025 (whole year) | 70¢ a mile |
The IRS raised the 2026 rate from July 1 because of higher fuel prices, so miles driven in each half of the year use a different rate.
How to use this calculator
- Choose the tax year.
- Enter your business miles for each part of the year. Commuting from home to a regular workplace doesn't count.
- Add business parking and tolls, which you can claim on top of the rate.
- Optionally enter your tax rate (income tax plus self-employment tax) to see roughly what the deduction saves you.
How it's calculated
Worked example
Morgan, a freelance photographer, drove 5,000 business miles from January to June 2026 and 6,000 from July to December, and paid $200 in business parking and tolls. Morgan's combined tax rate is about 30%.
Morgan can deduct $8,385, saving roughly $2,515 in tax.
What this calculator doesn't cover
- The actual expense method (a share of your real car costs and depreciation). You can't switch freely between methods, so check the IRS rules before choosing.
- Medical, moving and charity mileage rates.
- Vehicles that don't qualify for the standard rate, such as some fleets of five or more cars used at the same time.
Frequently asked questions
What counts as business miles?
Driving to meet clients, travel between work locations, trips to pick up supplies, and business errands. Regular commuting between your home and a main workplace doesn't count.
Can I claim gas and repairs as well?
Not with the standard mileage rate: it already covers gas, maintenance, insurance and depreciation. You can add business parking fees and tolls.
Why are there two rates for 2026?
The IRS raised the business rate from 72.5 cents to 76 cents a mile starting July 1, 2026 because fuel prices rose. Use the rate for when each trip happened.
Source: IRS standard mileage rates.