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2026 mileage deductions: both IRS business rates
The IRS business mileage rate is 72.5 cents per mile for January 1 through June 30, 2026, and 76 cents per mile for July 1 through December 31, 2026. Keep trip dates visible so the correct rate reaches your deduction worksheet.
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General information, not legal or tax advice.
Split the business mileage log at midyear
The IRS mileage table gives 72.5 cents per business mile for January 1 through June 30, 2026, followed by 76 cents for July 1 through December 31, 2026. Its car-expense guidance also identifies the split-year change. Separate qualifying trips by date before applying either rate; a single annual mileage total cannot preserve that distinction.
Sources: IRS, Standard mileage rates (page last updated 28-Jul-2026); IRS Topic no. 510, Business use of car
Check eligibility before choosing the standard method
IRS guidance requires owning or leasing the car and excludes use of five or more cars at the same time. Prior depreciation choices, a Section 179 deduction, a special depreciation allowance or actual-expense treatment of a leased car can also prevent use of the standard rate. Give the CPA the vehicle’s method history before making a comparison.
Review the first-use and lease commitments
For an owned car, the standard mileage method must be chosen in the first year the car is available for business use. For a leased car, choosing it commits the taxpayer for the lease period, including renewals. Keep acquisition, lease and prior-return records together; the current year’s mileage log does not resolve earlier elections.
Keep tolls, parking and trip evidence identifiable
Business parking fees and tolls are separately deductible under either the standard mileage or actual-expense method. IRS guidance requires adequate records or sufficient supporting evidence for the expenses. A practical log should connect the date, business purpose and distance to the trip, with parking and toll receipts saved separately.
Distinguish self-employed deductions from employee expenses
The IRS says most employees cannot deduct unreimbursed car expenses, with specified exceptions for reservists, qualified performing artists and fee-basis state or local government officials. Self-employed car expenses are reported on Schedule C. Ask your CPA which treatment applies before treating an employee’s unreimbursed trip as a personal deduction.
Sources: split the business mileage log at midyear
Employee reimbursements and vehicle records
Keep vehicle expense records ready for your CPA
Tidwell helps organize mileage support, receipts and business expense records. Your CPA determines eligibility and prepares the deduction.