The 2026 standard mileage rates, and the July 1 change
Rather than tracking every fuel receipt, the IRS lets you deduct a flat amount per mile driven for qualifying purposes. 2026 is unusual: citing a sharp rise in fuel prices, the IRS raised the rates midway through the year: the first midyear adjustment since 2022. That means a full-year claim has to be split at June 30.
| Purpose | Jan 1 – Jun 30 | Jul 1 – Dec 31 | Who can claim |
|---|---|---|---|
| Business | 72.5¢ | 76¢ | Self-employed / Schedule C |
| Medical or moving | 20.5¢ | 23.5¢ | Itemizers (moving: active-duty military) |
| Charitable | 14¢ | 14¢ | Itemizers: fixed by statute, never inflates |
Driving 6,000 business miles in each half of 2026 gives 6,000 × 72.5¢ + 6,000 × 76¢ = $8,910. For a self-employed filer in the 22% bracket that is worth roughly $2,700 once self-employment tax savings are counted, often the single largest deduction on a Schedule C.
Which miles count
Business miles are those driven between business locations, to clients, to the bank or supplier, or to a temporary work site. What doesn't count is commuting: the drive between home and your regular place of work is personal, no matter how far. There's an important exception: if your home is your principal place of business (see the home office deduction), trips from home to clients become deductible business miles rather than commuting, which can transform the size of the claim.
Standard rate vs actual expenses
The alternative is the actual expense method: deduct the business-use percentage of fuel, insurance, repairs, registration, lease payments and depreciation. Which wins depends on the vehicle. High-mileage drivers of efficient, paid-off cars usually do better with the standard rate; expensive vehicles with low mileage and heavy depreciation often do better with actual costs. One thing to know before you choose: if you want the option to use the standard rate later, you must use it in the first year the vehicle is placed in service. Our vehicle deduction guide covers the comparison in detail.
Costs you can add on top of the standard rate
The standard rate is meant to cover fuel, maintenance, insurance and depreciation, but not everything. Even when you use it, you can separately deduct business-related parking fees and tolls, plus the business-use share of state and local personal property tax on the vehicle and any interest on a vehicle loan if you're self-employed. What you can't add is anything the rate already covers: no separate claim for gas, oil changes, tires, repairs or insurance on top of the per-mile amount. Parking tickets and traffic fines are never deductible, and neither is parking at your regular workplace, which counts as a commuting cost.
Employees, medical and charity miles
W-2 employees generally cannot deduct unreimbursed business mileage on a federal return. That deduction is suspended. Employers can reimburse tax-free at the standard rate, which is the usual solution. Medical mileage (driving to appointments) and charitable mileage (volunteer driving) are only deductible if you itemize, and medical costs must clear 7.5% of AGI first, so most filers who log those miles never actually benefit from them.