The 2026 IRS Mileage Rate: What It Means for Your Business Driving
The IRS bumped the 2026 business mileage rate to 72.5 cents a mile. If you drive for work, that is the number that sizes your deduction — but only if your logs are clean.
Key takeaways
- The 2026 IRS business rate is 72.5 cents per mile, up 2.5 cents.
- It covers gas, depreciation, insurance, and maintenance in one figure.
- You must track business miles separately from commuting.
- A clean log is what protects the deduction if audited.
The number for 2026
The IRS set the 2026 optional business standard mileage rate at 72.5 cents per mile, up 2.5 cents from 2025. That single rate is meant to cover fuel, depreciation, insurance, maintenance, and registration for business use — you do not itemize those separately if you use it. Charity, medical, and moving rates are set separately and are lower, so do not mix them.
What the rate actually bundles
| Cost inside the rate | Note |
|---|---|
| Fuel | Priced at average cost |
| Depreciation | Built into the per-mile figure |
| Insurance | Business portion |
| Maintenance | Routine upkeep |
| Registration | Prorated share |
Commuting does not count
The drive from home to your regular workplace is commuting, not business — and it is not deductible. Only driving from a work site to a client, or between job locations, counts. Mixing the two is the fastest way to lose a deduction.
The log is the whole game
The rate is useless without records. You need date, miles, and business purpose for each trip. A simple notes app or a mileage tracker works; a shoebox of receipts does not. The IRS wants the total business miles to reconcile with the deduction, so log as you go, not in December.
Actual expense vs standard
If you drive a pricey car with low miles, the actual-expense method (real gas, depreciation, insurance) can beat the standard rate. Run both before you pick; you cannot switch freely once you choose for that vehicle.
Frequently asked questions
What is the 2026 IRS business mileage rate?+
Can I deduct my commute?+
What records do I need for the mileage deduction?+
Is the standard rate or actual expenses better?+
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