2026 Standard Mileage Rates: 72.5¢ Then 76¢ for Business Miles

Author: Gloria Liu, CPA ｜ YCL Tax, Accounting & Advisory

Bottom line in one breath

If you use a car for business, charity, medical, or qualifying military moving miles, the IRS optional standard mileage rates for 2026 are split mid-year: business use is 72.5 cents per mile from January 1–June 30 and 76 cents per mile from July 1–December 31 (verified on the IRS standard-mileage page, updated after IR-2026-29). Charity remains 14 cents. Cary/RTP self-employed owners should treat rate selection as compliance planning—pair the correct cents with a contemporaneous mileage log; the rate table alone does not substantiate your deduction.

Background

Each year (and sometimes mid-year) the IRS publishes optional cents-per-mile rates that approximate fixed and variable vehicle costs for business, and variable costs for medical/moving. IR-2025-128 (December 29, 2025) set the January–June 2026 business rate at 72.5¢ (up 2.5¢ from 2025’s 70¢). A later update raised July–December 2026 business miles to 76¢, with medical/moving moving from 20.5¢ (first half) to 23.5¢ (second half). The charitable rate stays 14¢ by statute. Actual expenses (gas, depreciation, etc.) remain an alternative when the rules allow.

Old vs. new

1. 2025 business: 70¢ all year.

2. 2026 business: 72.5¢ (Jan 1–Jun 30) → 76¢ (Jul 1–Dec 31).

3. 2026 charity: 14¢ both halves.

4. 2026 medical / military moving: 20.5¢ then 23.5¢.

5. Method lock-in: For an owned auto, you generally must use standard mileage in the first year the car is available for business if you want to keep the option later; for a lease, once you choose standard mileage you generally must stick with it for the entire lease (including renewals).

6. Employees: Unreimbursed employee vehicle costs are generally not deductible as miscellaneous itemized deductions (limited exceptions)—employer reimbursements under an accountable plan are the usual path.

7. EVs/hybrids: Same cents-per-mile table applies as gasoline vehicles (per IRS announcement).

Self-check: does this affect you?

1. You are self-employed or a partner/S corp shareholder driving for the trade or business.

2. You drive for charity volunteering and want the statutory 14¢ rate.

3. You changed methods or bought/leased a car in 2026 and need to confirm election rules.

4. Your log stops at “total miles” without business purpose / date / destination.

5. You split personal and business use on one vehicle and need allocation workpapers (Cary/RTP + occasional Shanghai trips on U.S. returns).

Simplified example (illustration only)

Ms. Zhou, a Cary consultant, drives 4,000 business miles in Jan–Jun 2026 and 5,000 in Jul–Dec 2026:

1. First-half deduction sketch: 4,000 × $0.725 = $2,900.

2. Second-half sketch: 5,000 × $0.76 = $3,800.

3. Combined sketch: $6,700 before considering parking, tolls (often separate), or whether actual expenses would differ—not a promise that standard mileage is better every year.

4. Audit file: Odometer readings, calendar appointments, and client addresses supporting business purpose.

Action timeline

1. Now (Sep 2026): Split your year-to-date log at July 1; apply 72.5¢ vs 76¢ correctly.

2. Ongoing: Record date, miles, destination, business purpose the same day when possible.

3. Year-end: Choose standard vs actual only if eligible; watch first-year / lease lock-in.

4. Reimbursements: Employers updating mileage policies should use the matching half-year rate for accountable plans.

5. Before filing: Re-check irs.gov/tax-professionals/standard-mileage-rates for any further change (待核).

What YCL can do

1. Half-year rate application and log review for Schedule C / partnership / S corp vehicles.

2. Standard vs actual expense comparison workpapers (when both remain available).

3. Accountable-plan mileage policy updates for RTP employers.

4. Coordination with depreciation / §179 when actual expenses are used instead.

5. CPA Chenchen Liu and Gloria—Free Consultation at yclcpa.com (Cary + Shanghai).

FAQ

Q: Can I use 76¢ for all of 2026?

A: No. The IRS table applies 76¢ only to miles driven July 1–December 31, 2026. January–June business miles use 72.5¢.

Q: Does a GPS app replace a mileage log?

A: Apps can help, but you still need business purpose and sufficient detail. Keep exports with your tax file.

Q: Are parking and tolls included in the cents rate?

A: Generally you may deduct business parking and tolls in addition to the standard mileage amount (see Pub. 463)—do not double-count costs already built into a reimbursement policy.

Book a consult

YCL Tax, Accounting & Advisory

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Disclaimer

This article is general tax information only and is not tax, legal, or investment advice for any person or business. Mileage rates and substantiation rules follow the latest IRS publications. Items marked 待核 require verification before filing. Consult a licensed professional for advice specific to you.