IRS mileage rate for 2026 and 2027

Use the rate for the date each mile was driven. A mileage log with dates makes the split between the two 2026 periods simple.

Example: a self-employed driver logs 12,000 business miles in 2026, 5,000 before July and 7,000 after. The deduction is 5,000 × $0.725 + 7,000 × $0.76 = $3,625 + $5,320 = $8,945. Business parking fees and tolls are deducted on top of that.

The rate replaces gas, insurance, repairs and depreciation. You cannot claim those as well, but self-employed people can still deduct the business share of car loan interest.

Self-employed people, including rideshare and delivery drivers, deduct business miles on Schedule C. Commuting from home to a regular workplace does not count.

Employees cannot deduct unreimbursed mileage on their federal return. The 2025 tax law made that permanent. The exceptions are Armed Forces reservists, state or local officials paid on a fee basis, and certain performing artists. If your employer reimburses you at or below the IRS rate under an accountable plan, the reimbursement is not taxable income.

Medical miles count toward the medical expense deduction, and miles driven for a charity count as a charitable gift, both only if you itemize. The moving rate is only for active-duty military and certain intelligence community members moving on orders.

For a car you own, you must use the standard rate in the first year the car is used for business if you want to use it at all. After that you can switch between the standard rate and actual costs year by year. For a leased car, if you start with the standard rate you must keep it for the whole lease.

You cannot use the standard rate for five or more vehicles used at the same time, such as a fleet.

The IRS expects a record made at or near the time: the date, the miles, where you went and the business purpose. An app that tracks trips is fine. Without a log, the deduction is the first thing lost in an audit.