🚗 Mileage Rate Calculator 2026
Calculate IRS mileage reimbursement using official 2026 rates for business, medical, and charitable driving.
IRS Standard Mileage Rates for 2026
The IRS announces standard mileage rates annually. For 2026, the business standard mileage rate is 70 cents per mile (up from 67 cents in 2024), the medical and moving rate is 21 cents per mile, and the charitable rate remains 14 cents per mile (set by statute and rarely changes). These rates are used for both tax deductions (self-employed, certain employees) and employer reimbursement programs. The IRS typically announces the next year’s rates in December; always verify the current year’s rates at irs.gov before filing.
Business Mileage Deductions: Who Qualifies
Self-employed individuals, independent contractors, and sole proprietors can deduct business mileage on Schedule C using either the standard mileage rate or the actual expense method. W-2 employees can no longer deduct unreimbursed business mileage on their federal return (the Tax Cuts and Jobs Act of 2017 eliminated the Miscellaneous Itemized Deductions category through 2025). However, employees in some states (California, New York, Illinois, Massachusetts) can still deduct unreimbursed business expenses on their state returns. Armed forces members can deduct moving mileage. To use the standard mileage rate, you must choose it in the first year a vehicle is placed in service; if you use actual expenses first, you cannot switch to standard mileage later for that vehicle.
Employer Reimbursement: Accountable vs Non-Accountable Plans
Employer mileage reimbursement is tax-free to the employee if paid under an accountable plan: the employee must document business purpose, date, and mileage for each trip; submit an expense report; and return any excess reimbursement over substantiated miles. Reimbursement at or below the IRS standard rate ($0.70/mile in 2026) is entirely tax-free to the employee and deductible to the employer. Reimbursement above the IRS rate is taxable income to the employee for the excess portion. Flat car allowances not tied to actual mileage documentation are non-accountable plan payments and are fully taxable as wages. For companies with large field workforces, implementing an accountable mileage reimbursement plan is both required for tax purposes and ensures employees receive fair, tax-efficient compensation for business driving.
Standard Mileage vs Actual Expense Method
For self-employed individuals and business owners, the standard mileage rate simplifies recordkeeping — track miles, multiply by the rate, done. The actual expense method requires tracking every vehicle-related cost: gas, oil, maintenance, insurance, registration, depreciation, and loan interest, then multiplying by the business-use percentage. The actual method sometimes produces a higher deduction (particularly for expensive vehicles with high operating costs), but requires more documentation. For electric vehicles with near-zero fuel costs but higher purchase prices, the actual method including depreciation may be advantageous. A mileage log (required for both methods) must record: date, destination, business purpose, and miles for each trip. Apps like MileIQ, Everlance, and TripLog automate this tracking.
The IRS standard mileage rate for business driving in 2026 is 70 cents per mile. The medical and moving mileage rate is 21 cents per mile. The charitable mileage rate is 14 cents per mile (set by statute). The IRS announces rates each December for the following year. The business rate has increased significantly in recent years due to rising vehicle costs and fuel prices: 2022 was 58.5¢ then 62.5¢ (mid-year increase), 2023 was 65.5¢, 2024 was 67¢, 2025 was 70¢, and 2026 remains 70¢. Always verify at irs.gov before tax filing.
Yes — the IRS requires contemporaneous records for mileage deductions. A valid mileage log must include: date of each trip, starting and ending location (or destination), business purpose, and total miles. ‘Contemporaneous’ means recorded at or near the time of the trip, not reconstructed months later. Apps like MileIQ or Google Maps timeline data are acceptable if they capture the required information. Without a mileage log, an IRS auditor can disallow the entire deduction. If audited, the burden of proof is on the taxpayer.
No — the IRS does not allow deduction of commuting miles (home to regular workplace and back). Commuting is considered a personal expense regardless of how far you live from work or whether you use your vehicle for business at the workplace. Business mileage begins at your workplace (or first client stop if you go directly from home to a client). If you have a home office that qualifies as your principal place of business, then travel from home to a client IS deductible business mileage.
If your employer reimburses at or below the IRS rate using an accountable plan, the reimbursement is tax-free and you cannot take an additional deduction. If your employer reimburses above the IRS rate, the excess is taxable income. If your employer reimburses below the IRS rate (or nothing), W-2 employees cannot deduct the difference federally (TCJA eliminated this through 2025), though some states allow it. Self-employed individuals always deduct business mileage regardless of what a client reimburses.