IRS Mileage Rates 2026: The Complete Guide to Maximizing Your Tax Deductions

Everything you need to know about the new standard mileage rates, plus how to track your miles effortlessly for maximum tax savings

The IRS has officially released the 2026 standard mileage rates, and there’s good news for business drivers: the rate has increased to 72.5 cents per mile, the highest it’s ever been. Whether you’re a freelancer, small business owner, rideshare driver, or sales professional, understanding these new rates—and tracking your miles properly—can save you thousands of dollars on your taxes.

In this comprehensive guide, we’ll break down everything you need to know about the 2026 IRS mileage rates, who qualifies for deductions, and how to maintain IRS-compliant records that will stand up to an audit.

2026 IRS Standard Mileage Rates at a Glance

The Internal Revenue Service announced the new rates in Notice 2026-10, effective January 1, 2026:

Purpose	2026 Rate	Change from 2025
Business	72.5 cents/mile	+2.5 cents
Medical	20.5 cents/mile	-0.5 cents
Moving (military only)	20.5 cents/mile	-0.5 cents
Charitable	14 cents/mile	No change

The business mileage rate increase reflects rising costs of vehicle ownership, including higher fuel prices, increased insurance premiums, and growing maintenance expenses. This is welcome news for anyone who drives for work—every mile you track is now worth more on your tax return.

What the 2026 Rate Means for Your Tax Deductions

Let’s put these numbers into perspective with a real-world example:

If you drive 15,000 business miles in 2026:

• 2026 deduction: 15,000 × $0.725 = $10,875
• 2025 deduction: 15,000 × $0.70 = $10,500
• Extra savings: $375

For high-mileage professionals like real estate agents, medical sales reps, or delivery drivers who might log 25,000+ business miles annually, the potential deduction exceeds $18,000.

But here’s the catch: you only get these deductions if you have proper documentation.

Who Can Claim the Business Mileage Deduction?

The 72.5 cents per mile business rate applies to several categories of taxpayers:

Self-Employed Individuals and Freelancers

If you’re self-employed, you can deduct business mileage on Schedule C of your tax return. This includes:

• Driving to meet clients or customers
• Traveling between job sites
• Running business errands (bank deposits, supply purchases, post office)
• Attending business conferences or networking events

Small Business Owners

Business owners can deduct mileage for any driving related to business operations. This includes trips to:

• Supplier or vendor locations
• Client meetings
• Business-related appointments (accountant, lawyer, bank)
• Industry events and trade shows

Rideshare and Delivery Drivers

Uber, Lyft, DoorDash, Instacart, and other gig economy drivers can deduct every mile driven while available for rides or deliveries—not just miles with passengers or packages.

Sales Professionals and Field Workers

If you travel to meet customers, inspect properties, or perform services at various locations, those miles are deductible (assuming your employer doesn’t reimburse you).

Medical Professionals Making House Calls

Doctors, nurses, home health aides, and other medical professionals who travel to patients can deduct those miles.

What Mileage is NOT Deductible?

Understanding what doesn’t qualify is just as important:

• Commuting miles: Driving from home to your regular workplace and back is never deductible
• Personal errands: Stopping at the grocery store on your way home from a client meeting doesn’t count
• Reimbursed miles: If your employer pays you for mileage, you can’t also deduct it
• Miles without documentation: No log = no deduction

Pro tip: If you have a qualifying home office, trips from your home office to business locations may be fully deductible since your home is considered your principal place of business.

IRS Mileage Log Requirements: What You Need to Track

The IRS requires “contemporaneous” records—meaning you need to log your miles at or near the time of travel. A mileage log must include:

1. Date of each trip
2. Destination (where you went)
3. Business purpose (why you went)
4. Miles driven (start and end odometer readings, or total miles)

What Happens Without Proper Records?

Without adequate documentation, you risk:

• Complete denial of your mileage deduction during an audit
• Penalties and interest on unpaid taxes
• Increased scrutiny of other deductions on your return

The IRS is clear: estimates and reconstructed logs created after the fact are not acceptable. You need real-time tracking.

Standard Mileage Rate vs. Actual Expenses: Which Should You Choose?

The IRS gives you two options for deducting vehicle expenses:

Option 1: Standard Mileage Rate (72.5¢/mile in 2026)

Pros:

• Simple calculation
• Less recordkeeping (just track miles, not every expense)
• Often better for fuel-efficient vehicles
• Great for high-mileage drivers

Cons:

• May leave money on the table if you have an expensive vehicle
• Can’t switch to actual expenses later if you start with standard rate on a leased vehicle

Option 2: Actual Expenses Method

Track and deduct the actual costs of operating your vehicle:

• Gas and oil
• Repairs and maintenance
• Insurance
• Registration fees
• Depreciation
• Lease payments (if applicable)

Pros:

• Can yield larger deductions for expensive vehicles
• Better for newer cars with high depreciation

Cons:

• Requires meticulous recordkeeping
• Must track every receipt
• Complex calculations

Our recommendation: For most drivers, the standard mileage rate is simpler and often results in a comparable or better deduction. The key is accurate mileage tracking.

How to Track Mileage the Right Way

Gone are the days of scribbling miles in a paper notebook. Modern mileage tracking apps make it easy to maintain IRS-compliant records automatically.

Automatic Mileage Tracking with Magica

Magica Mileage Tracker is designed specifically for professionals who need accurate, automatic mileage logging:

Key features for tax compliance:

• Automatic trip detection: Magica recognizes when you’re driving and logs trips automatically—no manual entry required
• Business vs. personal classification: Tag trips as business, medical, or personal with one tap
• Detailed trip data: Every trip includes distance, time, route, and purpose
• IRS-compliant reports: Export professional PDF or CSV reports perfect for your accountant or an audit
• Privacy-first design: Your data stays on your device—no cloud storage means no privacy concerns

Ready to maximize your 2026 mileage deductions? Download Magica free today and start tracking every deductible mile.

2026 Mileage Deduction Calculator

Here’s a quick reference for common mileage scenarios using the 2026 business rate of 72.5¢/mile:

Annual Business Miles	Tax Deduction
5,000 miles	$3,625
10,000 miles	$7,250
15,000 miles	$10,875
20,000 miles	$14,500
25,000 miles	$18,125
30,000 miles	$21,750

Every mile matters. If you’re not tracking, you’re leaving money on the table.

Medical and Charitable Mileage: Don’t Forget These Deductions

While the business rate gets the most attention, don’t overlook other deductible miles:

Medical Mileage (20.5¢/mile)

You can deduct miles driven for medical purposes, including:

• Trips to doctor appointments
• Pharmacy visits
• Medical tests and procedures
• Visiting a sick family member in the hospital

Medical mileage is an itemized deduction, and total medical expenses must exceed 7.5% of your adjusted gross income to qualify.

Charitable Mileage (14¢/mile)

If you volunteer for a qualified nonprofit organization, you can deduct miles driven for charitable purposes:

• Driving to volunteer activities
• Transporting goods for charity
• Running errands for nonprofit organizations

While 14 cents per mile may seem small, it adds up—and every deduction helps.

Important Changes and Updates for 2026

The “One, Big, Beautiful Bill” Impact

Recent legislation has made permanent certain provisions affecting mileage deductions:

• The disallowance of miscellaneous itemized deductions for unreimbursed employee expenses continues
• This means most W-2 employees cannot deduct mileage on their personal returns (even if their employer doesn’t reimburse them)
• Self-employed individuals and business owners are unaffected

Depreciation Component

For those tracking basis reduction, the depreciation portion of the 2026 standard mileage rate is 35 cents per mile (up from 33 cents in 2025). This affects your vehicle’s adjusted basis if you later sell or trade it.

Electric and Hybrid Vehicles

The standard mileage rate applies equally to gas, hybrid, and fully electric vehicles. EV drivers can use the same 72.5¢/mile rate for business travel.

Tips for Maximizing Your 2026 Mileage Deductions

1. Start Tracking January 1st

Don’t wait until tax season to think about mileage. Set up automatic tracking now so you capture every deductible mile from day one.

2. Classify Trips Immediately

Tag each trip as business or personal right after it ends. Trying to remember trip purposes months later is nearly impossible—and the IRS knows it.

3. Keep Your App Running

For automatic tracking to work, your mileage app needs to be active. Magica uses smart detection to minimize battery impact while ensuring no trips are missed.

4. Export Reports Quarterly

Don’t wait until April. Export and review your mileage reports every quarter to:

• Catch any missing trips
• Ensure proper classification
• Stay organized for tax time

5. Maintain Backup Documentation

While your mileage app provides the primary record, keep supporting documents like:

• Calendar entries showing client meetings
• Receipts from business locations
• Email confirmations of appointments

6. Consider a Dedicated Business Vehicle

If you’re a high-mileage driver, using one vehicle exclusively for business simplifies tracking and can maximize deductions.

Frequently Asked Questions

When does the 2026 mileage rate take effect?

The new rate of 72.5 cents per mile applies to business miles driven on or after January 1, 2026.

Can I deduct mileage if my employer reimburses me?

No. You cannot deduct miles that your employer has already reimbursed. However, if your employer reimburses at a rate lower than 72.5¢/mile, you may be able to deduct the difference (if you’re self-employed or meet certain criteria).

Do I need receipts for gas when using the standard mileage rate?

No. When using the standard mileage rate, you don’t need to keep gas receipts. The rate covers all operating costs. You only need an accurate mileage log.

Can I switch between the standard rate and actual expenses?

If you own your vehicle and use the standard mileage rate in the first year, you can generally switch to actual expenses in later years. However, if you lease your vehicle and choose the standard mileage rate, you must use it for the entire lease period.

What if I forgot to track miles earlier this year?

Unfortunately, the IRS requires contemporaneous records. You cannot reconstruct a mileage log after the fact. Start tracking now to capture all remaining deductible miles this year.

Is there a maximum number of miles I can deduct?

There’s no cap on deductible business miles, as long as you have proper documentation and the miles are legitimately for business purposes.

Start Tracking Your Miles Today

The 2026 IRS mileage rate of 72.5 cents per mile represents a significant tax-saving opportunity—but only if you track your miles properly. With the right tools, mileage tracking takes seconds per day and can save you thousands of dollars per year.

Magica Mileage Tracker makes IRS-compliant mileage logging effortless:

• ✓ Automatic trip detection
• ✓ One-tap business classification
• ✓ Professional tax reports
• ✓ Complete privacy (your data stays on your device)
• ✓ CarPlay support for hands-free tracking

Don’t leave money on the table. Download Magica free and start maximizing your 2026 mileage deductions today.

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Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult with a qualified tax professional for advice specific to your situation.