2026 IRS Mileage Rates Changed Mid-Year: What It Means for You and Why Your Mileage Log Matters

Oct 9

4 min read

If you drive for work, 2026 is an unusual tax year. For the first time since 2022, the IRS changed the standard mileage rates in the middle of the year. Starting July 1, 2026, the business rate rose to 76 cents per mile, which is believed to be the highest business rate on record. The IRS made the change because fuel prices went up. It means one tax year now has two rates. Below we cover what changed, who it affects, and why a good mileage log matters more than ever.

The 2026 Standard Mileage Rates at a Glance

Business: 72.5¢ per mile from January 1 to June 30, then 76¢ per mile from July 1 to December 31
Medical and military moving: 20.5¢ per mile from January 1 to June 30, then 23.5¢ per mile from July 1 to December 31
Charitable: 14¢ per mile for the whole year. This rate is set by law and did not change.

The January rates come from IRS Notice 2026-10. The July increase was announced in IRS Announcement 2026-11. The rates apply to cars, vans, pickups, and panel trucks, including hybrid and fully electric vehicles.

What the Mid-Year Change Means for You

The date of each trip now decides its rate. Miles you drove between January and June use the lower rate. Miles you drove from July through December use the higher rate. You can't apply one rate to the whole year.

Example: Say you drove 6,000 business miles in the first half of the year and 6,000 in the second half.

January–June: 6,000 × $0.725 = $4,350
July–December: 6,000 × $0.76 = $4,560
Total deduction: $8,910

If you used 72.5¢ for all 12,000 miles, you would claim $8,700 and lose $210. If you used 76¢ for all of them, you would claim $210 too much, and that could cause problems with the IRS. Getting this right depends on having dated records.

If your employer reimburses you for mileage, the higher rate applies to allowances paid on or after July 1 for miles driven on or after July 1.

Who Can Deduct Mileage?

Self-employed people and small business owners, including independent contractors, gig and delivery drivers, real estate agents, and mobile notaries and loan signing agents.
Medical travel: if you itemize and your medical expenses are more than 7.5% of your adjusted gross income.
Volunteer driving for a qualified charity: if you itemize.
Active-duty military moving under permanent change-of-station orders. Under the 2025 tax law, this now also covers certain intelligence community members.

W-2 employees, take note: most employees can't deduct unreimbursed work mileage on their federal return. There are a few exceptions, such as Armed Forces reservists, qualified performing artists, fee-basis state and local officials, and eligible educators. If you drive for your job, ask your employer about a mileage reimbursement plan.

Standard rate or actual expenses? You can deduct the standard mileage rate or your actual vehicle costs. If you own your vehicle and want to use the standard rate, you must choose it in the first year you use the vehicle for business. If you lease, once you choose the standard rate you have to use it for the whole lease. Your choice can affect your deductions for years, so talk to your tax preparer before you decide.

Why Documenting Your Mileage Properly Matters

Vehicle expenses are a common focus of IRS examinations. Tax law holds car expenses to a stricter standard of proof than most other deductions. A rough estimate, or a log you put together from memory at tax time, usually won't hold up. If you're audited and can't show proper records, the IRS can disallow your entire mileage deduction and add interest and possibly penalties.

In 2026 the dates matter even more. Without a record of when each trip happened, you can't prove which miles qualify for the higher 76¢ rate.

What a Proper Mileage Log Should Include

The date of each trip
Where you started and where you went
The business purpose, for example "Loan signing – Smith refinance" or "Client meeting – contract review"
Miles driven for each trip, from odometer readings or a GPS-based app
Your odometer reading at the start and end of the year, plus your total miles for the year (business and personal), which your tax return asks for
Receipts for business parking and tolls, which you can deduct on top of the standard mileage rate

Tips for Staying Organized

Log trips as they happen, or at least the same day. Records made at the time carry the most weight.
Use a mileage-tracking app, a spreadsheet, or a notebook you keep in the car. Pick the method you'll actually stick with.
Take a photo of your odometer on January 1 and December 31. This year, if you have one from around July 1, keep it too.
Keep personal and business trips separate. Commuting from home to your regular workplace generally isn't deductible.
Total your miles every month or quarter. It makes tax time easier and helps you plan estimated tax payments.
Keep your mileage records for at least three years after you file.

Let Us Help This Tax Season

Batista Notary Services prepares individual federal and Virginia tax returns. We also help clients get their records in order before filing. If you drove for business, medical, or volunteer reasons in 2026, bring your mileage log to your tax appointment and we'll apply the right rate to each half of the year. Contact us to schedule your appointment. ¡Hablamos español!

This article is general information, not tax or legal advice. Rates are from IRS Notice 2026-10 and Announcement 2026-11. Talk to a qualified tax professional about your own situation.