Skip to content
Ledgely
Financial Systems·7 min read

2026 Business Mileage Deduction: Rate, Records, and Methods

The 2026 IRS business mileage rate changed midyear: 72.5 cents per mile through June 30 and 76 cents per mile from July 1. Learn which trips may qualify, what to record, and how standard mileage differs from actual expenses.

Last updated: October 9, 2026

Direct answer

For 2026, the IRS optional standard mileage rate for business use is 72.5 cents per mile from January 1 through June 30, and 76 cents per mile from July 1 through December 31. Taxpayers may use the standard-mileage method or, when eligible, actual vehicle expenses. Only qualified business use counts; record the date, miles, destination, and business purpose.

Simple explanation

Mileage is easy to overlook and difficult to reconstruct months later. Commuting is generally personal, and a trip’s tax treatment depends on the route, work location, vehicle, prior method choice, and substantiation—not merely on driving for a business owner.

How to claim and substantiate mileage

  1. 1

    Separate business travel from commuting

    Client and job-site travel may qualify depending on the route and work arrangement; ordinary commuting between home and a regular workplace is generally personal. If a qualifying home office is your principal place of business, some trips may be treated differently; check the IRS rules.

  2. 2

    Choose a method you are eligible to use

    The IRS optional business standard mileage rate is 72.5 cents per mile from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31, 2026. Use the date of each trip. The actual-expense method may be available, subject to method-selection and substantiation rules.

  3. 3

    Keep a timely mileage log

    Record the date, destination, business purpose, and miles for each trip. Retain total mileage and supporting records so business and personal use can be distinguished.

  4. 4

    Apply the rate for the correct year

    The IRS optional business standard mileage rate is 72.5 cents per mile from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31, 2026. Use the date of each trip. The actual-expense method may be available, subject to method-selection and substantiation rules.

  5. 5

    Keep related vehicle records

    Retain receipts, odometer readings, and evidence supporting the method and business-use percentage. Ask a tax professional if you changed methods, own multiple vehicles, or use a vehicle for mixed purposes.

Key takeaways

  • 2026 rate: 72.5 cents/mile Jan. 1–June 30; 76 cents/mile July 1–Dec. 31.
  • Only qualifying business travel counts; ordinary commuting is generally personal.
  • Choose standard mileage or actual expenses only if eligible under IRS rules.
  • Log date, destination, business purpose, and miles close to the time of travel.
  • Keep records for the applicable period and use the rate for the correct tax year.

Frequently asked questions

What is the 2026 IRS business mileage rate?

For business use, the optional standard rate is 72.5 cents per mile from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31. Check the IRS rates page for later changes and other travel purposes.

Can I deduct a personal car used for business?

Potentially. You may be able to claim qualifying business use even when you own the vehicle personally, but you must distinguish business and personal mileage and follow the method-selection rules.

Does commuting count as business mileage?

Ordinary travel between home and a regular workplace is generally nondeductible commuting. Travel between workplaces or to qualifying temporary work locations may differ; facts matter.

What records should I keep?

Record the date, destination, business purpose, and miles for each trip, along with total vehicle mileage and documents supporting the chosen method.

Can I switch between actual expenses and standard mileage?

The choice may depend on whether the vehicle is owned or leased and the method used in the first year it was placed in service for business. Check Publication 463 before changing methods.

Related guides

Official sources

Educational information only; not individualized legal, tax, accounting, or financial advice. Rules can change and results depend on your facts. Check current official guidance or consult a qualified professional.