Latest update: January 5, 2026 - 5 min read

The IRS Mileage Rate Explained

The IRS mileage rate, also known as the federal mileage rate, is calculated each year. The IRS usually publishes the new rates at the end of December or the beginning of January.

The rate represents the maximum rate per mile an employer can reimburse their employees at, without it being subject to tax. A self-employed individual can also use it to claim business mileage deductions on their taxes.

If you’re here to find out what the current mileage rates are, feel free to head straight there.

How is the IRS mileage rate calculated

Each year’s mileage rate is based on an examination of the previous year’s costs of owning and driving a vehicle in the U.S.

According to the IRS, “the standard IRS mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.”

Also read: Medical and Charity Mileage Rates

Examples of variable costs include gas, oil changes, parking, tire changes, getting a new battery, and other necessary components.

Fixed costs include – among others – insurance, license, registration fee, and taxes.

What does the IRS mileage rate cover

The IRS mileage rate is calculated to cover all expenses of owning and running your motor vehicle, but only for business purposes.

Some of these costs include:

Leasing payments
Insurance
Vehicle tax
Maintenance of your vehicle
Gas and oil
Car tyres

The federal mileage rates for 2026

72.5 cents per mile for business-related driving
20.5 cents per mile for medical and moving purposes
14 cents per mile for charity-related miles

The federal mileage rates for 2025

70 cents per mile for business miles
21 cents per mile for medical and moving purposes
14 cents per mile in the service of charitable organizations

The federal mileage rate for previous years

Year	Business	Charity	Medical & Moving
2026	72.5	14	20.5
2025	70	14	21
2024	67	14	21
2023	65.5	14	22
Jul 1- Dec 31, 2022	62.5	14	22
Jan - Jun 30, 2022	58.5	14	18
2021	56	14	16
2020	57.5	14	17
2019	58	14	20
2018	54.5	14	18
2017	53.5	14	17
2016	54	14	19
2015	57.5	14	23
2014	56	14	23.5
2013	56.5	14	24
2012	55.5	14	23
Jul 1 - Dec 31, 2011	55.5	14	23.5
Jan 1 - Jun 30, 2011	51	14	19
2010	50	14	16.5
2009	55	14	24
Jul 1 - Dec 31, 2008	58.5	14	27
Jan 1 - Jun 30, 2008	50.5	14	19
2007	48.5	14	20
2006	44.5	14	18
2005	40.5	14	15
2004	37.5	14	14
2003	36	14	12
2002	36.5	14	13
2001	34.5	14	12
2000	32.5	14	10
1999	31	14	10
1998	32.5	14	10
1997	31.5	12	10

How to use the IRS mileage rate

Use the IRS mileage rate to receive mileage reimbursement or deductions for the business-use portion of driving your vehicle.

As an employee

The most common way for companies to reimburse employees for business-related driving is through the federal mileage rate. Each month, you report the business mileage you’ve driven and receive reimbursement equal to the IRS mileage rate for each mile. You can find out more about employee mileage reimbursement in our other guide.

It might also be worth calculating your mileage reimbursement to see how much you could claim.

As a self-employed

As a self-employed individual, you can deduct your self-employed business mileage expenses from your annual tax return. Using the mileage rate set by the IRS, calculate the business mileage you’ve driven throughout the year you’re claiming for and multiply by that year’s set government mileage rate.

Here’s a simple example of what that could look like:

Sarah is a freelance photographer who drives her car for business-related activities, such as meeting clients, traveling to photo shoots, and picking up supplies.
At the end of the year, Sarah’s mileage log shows:

Business miles driven: 10,000 miles
IRS mileage rate for 2026: 72.5 cents per mile

Deduction calculation:
Sarah can deduct her business mileage using the IRS standard mileage rate:
10,000 miles × 0.725 (IRS rate for 2026)=7,250
Total Deduction: $7,250

Tracking your mileage and keeping records

In order to apply the mileage rate for reimbursements or deductions, you must first track and log all of your business driving to be able to separate it from personal trips.

You can try using a manual solution, such as a notebook or a spreadsheet; for automatic tracking and easy classification of all your trips, a mileage tracking app might be a good option to consider.

With accurate records of your business driving, you’ll be able to report it to your employer or the IRS in case you get audited.

FAQ

The mileage rate is a rate set by the IRS to cover the expenses of using one’s personal vehicle for business purposes. The rate is set to cover all costs of owning and operating the vehicle for the business portion of its use.

The IRS reevaluates the standard mileage rate each year to make sure it can cover the expenses of owning and running a vehicle. The mileage rate increases almost every year, and it’s usually published in late December or early January.