Definition
An IRS rate per mile used to deduct the cost of driving a personal car for business; it was 72.5 cents through June 2026 and 76 cents from July 1, 2026.
What it means
Instead of tracking actual car expenses such as gas, repairs, insurance and depreciation, self-employed people and businesses can multiply business miles by the IRS standard mileage rate. For 2026, the IRS set 72.5 cents per mile for January 1 through June 30 and raised it to 76 cents per mile for July 1 through December 31. Separate rates apply to driving for charity (14 cents) and for medical care or a military move. Employees generally cannot deduct unreimbursed job mileage on their federal return, but employers often reimburse at the IRS rate tax-free. You need a log showing the date, miles and business purpose of each trip. Commuting from home to a regular workplace is not business mileage.
Example
A delivery driver who logs 4,000 business miles from January to June and 5,000 from July to December 2026 can deduct 4,000 x $0.725 + 5,000 x $0.76 = $2,900 + $3,800 = $6,700.
Illustrative numbers only. Your situation will differ.