Higher IRS Mileage Rates Take Effect

Due to rising fuel costs, the IRS has increased the 2026 cents-per-mile rates for calculating certain vehicle deductions. Effective July 1, 2026, the standard mileage rate for the business use of a car, SUV, van, pickup truck or panel truck is 76 cents per mile, up from 72.5 cents per mile for the first half of the year.

The revised rate for medical and certain qualified moving purposes is 23.5 cents per mile, up from 20.5 cents per mile. For charitable driving, the 14 cents per mile rate remains unchanged.

These rates apply to gasoline- and diesel-powered vehicles as well as electric and hybrid ones.

Don’t Forget to Track Your Mileage

The deduction is only as good as the records supporting it. To protect your deduction, keep detailed mileage records showing the date, business destination, business purpose and miles driven.

A mileage-tracking app can make this much easier by automatically recording trips throughout the year. Whether you use an app, spreadsheet or written log, the important thing is to keep your records regularly rather than trying to recreate them at tax time.

Because 2026 has two different mileage rates, be sure your records distinguish between miles driven before and after July 1.

If you have questions about deductible vehicle expenses or whether the standard mileage rate or actual-expense method is right for your business, contact our office.