The IRS just dropped the numbers for 2026, and honestly? I’m a little surprised. At 72.5 cents per mile, we’re looking at the highest standard mileage rate ever. That’s a 2.5-cent jump from last year’s 70 cents.
Here’s the thing nobody’s talking about: this isn’t just a cost-of-living adjustment. Gas prices dipped in late 2025, but maintenance and insurance costs? Through the roof. The IRS factors all of that in.
What the 2026 Rate Means for You
Let’s put this in perspective. If you drove 15,000 business miles last year, you could deduct:
- 2025 rate (70¢): $10,500
- 2026 rate (72.5¢): $10,875
That’s an extra $375 just from the rate increase. Not life-changing money, but not nothing either.
If you’re a gig driver logging about 25,000 miles annually, your potential deduction just jumped from $17,500 to $18,125. That’s $625 more in your pocket for doing the same driving.
The Rates at a Glance
| Purpose | 2026 Rate | 2025 Rate | Change |
|---|---|---|---|
| Business | 72.5¢/mile | 70¢/mile | +2.5¢ |
| Medical/Moving | 20.5¢/mile | 21¢/mile | −0.5¢ |
| Charity | 14¢/mile | 14¢/mile | No change |
Quick note: the medical rate actually dipped half a cent this year. The charity rate is set by statute, so it’s been stuck at 14 cents since 1998.
Who Benefits Most?
Real talk: not everyone should use the standard mileage rate. Sometimes itemizing actual expenses makes more sense.
Standard mileage usually wins if:
- You drive a fuel-efficient vehicle
- Your car is paid off or nearly so
- You don’t have major repair bills
Actual expenses might be better if:
- You drive a gas guzzler (sorry, truck owners)
- You had expensive repairs this year
- You lease or financed a pricey vehicle
Not sure which method saves you more? Read our full breakdown of standard mileage vs. actual expenses.
If you insist on the standard rate but your actual vehicle expenses—depreciation, insurance, repairs, gas—come to 92 cents per mile, you’re leaving money on the table.
The Catch: You Need Records
Here’s where most people screw up. The IRS doesn’t just take your word for it. You need:
- Date of each trip
- Starting and ending locations
- Business purpose
- Total miles driven
Paper logbooks? Fine. Spreadsheets? Also fine. But fair warning: if you’re tracking manually, you’re probably missing trips. One study found manual trackers underreport mileage by 20-30%.
That’s real money left on the table.
Frequently Asked Questions
When does the 2026 rate take effect?
January 1, 2026. Any business miles you drove before that date fall under the 2025 rate of 70 cents.
Can I switch between standard mileage and actual expenses?
Depends. If you used standard mileage in the first year you put the car into service, you can switch to actual expenses later. But if you started with actual expenses (using MACRS depreciation), you’re stuck with it for that vehicle.
What counts as a business mile?
Driving between work locations, visiting clients, running business errands—yes. Your regular commute from home to your main office? No. That’s personal, sorry.
Do I need receipts for mileage?
Not receipts per se, but you need a contemporaneous log. “Contemporaneous” is IRS-speak for “written down around the time it happened.” Reconstructing your mileage in April from memory doesn’t cut it.
The Bottom Line
72.5 cents per mile is solid. But the rate only matters if you’re actually tracking your miles. Every trip you forget to log is money you’re handing back to the IRS.
Pro tip: Set up automatic tracking now, before tax season sneaks up on you. Your future self will thank you. And if you want to see exactly what the rate change means for your driving, try our mileage deduction calculator.
