The IRS business standard mileage rate for 2026 is 72.5 cents per mile for miles driven January 1 to June 30, 2026, and 76 cents per mile for miles driven July 1 to December 31, 2026. The 2025 rate was 70 cents per mile. A ProfitDrawer business mileage log records each trip and totals miles by month, so you can apply each rate to the right part of the year.
Because the rate changed in the middle of 2026, split your business miles at June 30.
Worked example (example numbers only): 4,200 business miles in 2026, with 2,000 before July and 2,200 after:
- 2,000 x $0.725 = $1,450.00
- 2,200 x $0.76 = $1,672.00
- Total: $3,122.00
Things to know:
- The rate replaces actual vehicle costs for that year. Business parking fees and tolls can still be deducted on top.
- For a car you own, you must choose the standard mileage rate in the first year the car is used in your business if you want to use it at all. After that, you can pick either method each year.
- Only business miles count. Log the date, destination, business reason and miles for each trip at the time you drive.
- Recent rates: 65.5 cents (2023), 67 cents (2024), 70 cents (2025).
The 2027 rate had not been published when this was updated, so check the IRS standard mileage rates page. General information, not tax advice.
Source: IRS: Standard mileage rates · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.