IRS Mileage Rate 2026

The IRS mileage rate 2026 has not been released yet. The IRS usually announces the new federal mileage rates in mid-December.

Based on the rising trend from the past couple of years, where the business rate increased from 67 to 70 cents per mile in 2025, we can also expect an  increase this year. We will update this article as soon as the new  rates are officially out.

 In the meantime, familiarize yourself with the current mileage rates, and scroll down to  read about how the rate may apply to your business driving in the new year. 

Mileage Rates 2025 vs 2026

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How to apply the business mileage rate

Self-employed (1099)

As a self-employed individual who drives for business, you can claim a tax deduction on your business vehicle expenses using the standard mileage rate set by the IRS, or apply the actual expenses method. The choice will largely depend on your vehicle and how much you drive in a tax year. 

Our self-employed mileage guide is a good place to start, if you want the rules explained in detail. 

Employees (W-2)

If you’re an employee driving a personal vehicle for work, your employer can choose to apply the standard mileage rate to reimburse you for all business-related driving. 

They can, however, reimburse you at a rate lower than the one set by the IRS. Bear in mind that if you get reimbursed at a rate higher than the standard mileage rate, it’s considered taxable income. 

Also read: Are Employee Reimbursements Taxable? 

Note: According to the Tax Cuts and Jobs Act 2017, most W-2 employees can't deduct unreimbursed expenses on their tax return. This law has recently been made permanent for most workers. Consult your individual case with your employer or accountant. 

You can find out more about mileage reimbursement rules for employees in our guide.

How are the mileage rates determined?

The IRS business mileage rate is reviewed annually and updated to reflect the current costs of owning and operating a vehicle in the U.S.

The business mileage rate factors in both fixed and variable vehicle expenses. In contrast, the mileage rates for medical and moving purposes are calculated using only variable costs.

Fixed costs include expenses such as:

• Insurance
• Registration and licensing fees
• Lease payments
• Vehicle depreciation

Variable costs cover expenses like:

• Fuel
• Parking
• Oil
• Tire replacements
• General maintenance

The charitable mileage rate is set by law and has not changed since 1998.