2026 IRS Standard Mileage Rates
The IRS uses different standard mileage rates depending on why a vehicle is used. In 2026, the business and medical/moving rates changed on July 1; the charitable rate remains fixed by statute.
| Purpose | Jan 1–Jun 30 | Jul 1–Dec 31 | Use |
|---|---|---|---|
| Business | $0.725/mile | $0.76/mile | Qualifying business transportation |
| Medical | $0.205/mile | $0.235/mile | Qualifying medical transportation |
| Charity | $0.14/mile | $0.14/mile | Qualifying charitable service |
| Moving | $0.205/mile | $0.235/mile | Special eligibility only |
Business Mileage
Qualifying business vehicle costs can generally be calculated using either the standard mileage method or the actual expense method.
Potentially qualifying trips
- Driving between business locations.
- Meeting clients or customers.
- Business deliveries and other ordinary business transportation.
- Travel to qualifying temporary work locations.
Commuting
Ordinary transportation between home and a regular workplace is generally commuting, not deductible business mileage.
Business + personal use
If the vehicle is used for both, only the qualifying business portion is generally deductible. Keep records that separate business and personal use.
Self-employed taxpayers
IRS Topic 510 generally points self-employed taxpayers to Schedule C or Schedule F, depending on the business. Special employee categories have different rules.
Medical Mileage
Medical mileage is a medical-expense deduction concept, not a universal employer or government reimbursement program.
2026 rate
20.5¢ → 23.5¢20.5¢ through June 30; 23.5¢ from July 1.
Parking + tolls
Qualifying medical parking fees and tolls can generally be added to the medical transportation amount.
Potentially qualifying transportation
- Driving to qualifying medical care.
- Transportation necessary for medical treatment under applicable rules.
- Certain transportation involving a person who must accompany a patient.
Not automatically deductible
Commuting to work, purely personal travel, and travel merely for general health improvement do not become deductible medical transportation simply because a medical reason exists.
Charitable Mileage
Charitable mileage has a statutory rate of 14¢ per mile for qualifying unreimbursed vehicle use connected with services to a qualified charitable organization.
What can be included?
The IRS allows 14¢ per qualifying charitable mile instead of calculating actual gas/oil costs. Qualifying parking fees and tolls can also be added. General repairs, maintenance, depreciation, registration, tires and insurance are not deductible as charitable car expenses under these rules.
Reporting
Charitable contributions are generally reported on Schedule A when the taxpayer itemizes and meets the applicable requirements.
Moving Mileage
Moving mileage is not a general deduction available to everyone. Current federal law restricts moving-expense deductions, with special rules for qualifying military members and certain intelligence-community taxpayers.
Mileage Reimbursement: Employee vs. Tax Deduction
Employer reimbursement
An employer pays an employee for qualifying business vehicle use. The IRS standard rate can be used as a reimbursement benchmark and can help substantiate qualifying amounts when the applicable requirements are met.
Tax deduction
A deduction is an amount allowed by tax law that reduces taxable income. It is not the same as receiving that amount in cash.
Accountable-plan concept
Employers commonly structure business mileage reimbursement under an accountable plan. The arrangement generally needs a business connection, adequate accounting/substantiation, and appropriate return of amounts that must be returned. Payroll treatment can differ when an arrangement fails the requirements.
Employer rate vs. IRS rate
The IRS standard mileage rate is not a universal mandatory employer reimbursement rate. A company can have its own policy. FirstMileage should therefore display both the employer policy rate and the IRS reference rate.
Above or below the IRS rate
A company may reimburse at a different rate. The tax treatment depends on the reimbursement arrangement and substantiation rules; do not automatically label the difference as a deduction or taxable income without reviewing the arrangement.
2026 Mileage Calculator
Choose a purpose, enter the date and miles, and FirstMileage applies the correct 2026 standard rate. Parking and tolls are shown separately.
Educational calculation only. Eligibility, substantiation, business purpose, reimbursement policy, itemization and other tax rules affect the final result.
Standard Mileage vs. Actual Vehicle Expenses
| Topic | Standard mileage | Actual expenses |
|---|---|---|
| Calculation | Qualifying miles × IRS rate | Actual qualifying costs allocated to the appropriate use |
| Gas/oil | Generally represented by the rate | Potentially included |
| Insurance | Generally represented by the rate | Potentially included for qualifying business use |
| Repairs/tires | Generally represented by the rate | Potentially included |
| Depreciation | Reflected through standard-mileage rules | Potentially included subject to limits |
| Lease payments | Not added on top | Potentially included for qualifying use |
| Parking/tolls | Generally separate when qualifying | Generally separate when qualifying |
No double counting
When using standard mileage for the same business use and year, do not add gasoline, insurance, repairs, depreciation or lease costs again as though they were separate standard-method deductions.
Owned vehicles
For a vehicle you own, choosing the standard mileage method generally requires choosing it in the first year the vehicle is available for business use if you want the standard method available in later years, subject to IRS rules.
Leased vehicles
If standard mileage is chosen for a leased vehicle, IRS guidance generally requires continuing it for the entire lease period, including renewals. Alternatively, actual expenses can include qualifying lease payments.
Restrictions
There are restrictions involving depreciation methods, Section 179, special depreciation allowance, fleet operation and other circumstances. FirstMileage should flag these issues rather than automatically declaring every vehicle trip deductible.
Recordkeeping: The Complete Mileage Log
A mileage report is useful only when the underlying records support the claimed use. IRS guidance requires adequate records or sufficient evidence to substantiate expenses.
Trip
Date, start, destination and miles.
Purpose
Specific business purpose, medical purpose or charitable service.
Vehicle
Vehicle ID and, where useful, beginning/ending odometer.
Recommended FirstMileage fields
- Date
- Start location
- Destination
- Purpose
- Beginning odometer
- Ending odometer
- Miles
- Vehicle
- Driver
- Client/project
- Parking
- Tolls
- Receipt/reference ID
- Reimbursement status
- Employer reimbursement rate
- IRS reference rate
Personal mileage and business-use percentage
For actual-expense allocation, total vehicle mileage and business mileage should be tracked so the appropriate business percentage can be calculated.
Mixed-purpose trips
If a trip combines business and personal purposes, do not automatically classify the entire trip as business. Document the qualifying portion.
Audit trail
For product quality, edited/deleted trips should retain an internal audit history showing what changed and why.
FirstMileage Tax-Ready Business Report
The report should organize evidence and calculations for the owner, accountant or tax preparer. It should not pretend to be an IRS tax return or make final eligibility decisions.
| Section | Contents |
|---|---|
| Business profile | Business name, tax year, address, owner/driver, optional internal tax ID. |
| Vehicle profile | Make/model/year, owned/leased, service date, vehicle ID. |
| Mileage summary | Total, business, personal and business-use percentage. |
| Trip log | Date, start, destination, purpose, odometer and miles. |
| IRS calculation | Purpose, applicable date period, rate, miles × rate. |
| Parking/tolls | Date, amount, purpose and receipt/reference. |
| Actual expenses | Fuel, oil, repairs, tires, insurance, registration, licenses, lease and depreciation where applicable. |
| Reimbursement | Employer rate, IRS reference rate, miles, amount, date and status. |
| Method comparison | Standard-mileage estimate vs actual-expense estimate when enough data exists. |
| Tax-prep summary | Annual totals plus review flags. |
Recommended annual PDF structure
- Cover and business information.
- Vehicle summary.
- Annual mileage totals.
- Detailed mileage log.
- Rate calculation by period.
- Parking/toll summary.
- Reimbursement summary.
- Actual-expense summary.
- Standard-vs-actual comparison.
- Exceptions/review flags.
- Disclaimer and recordkeeping notes.
Who Can Use FirstMileage?
Employees
Prepare mileage reimbursement records according to employer policy.
Self-employed
Track business mileage and vehicle expenses for tax preparation.
Business owners
Create reimbursement reports for employees and maintain company records.
Contractors
Separate qualifying business travel from personal/commuting travel.
Volunteers
Track qualifying charitable-service mileage.
Medical travelers
Organize qualifying medical transportation and related costs.
Refund vs. Deduction vs. Reimbursement
Tax deduction
Reduces taxable income when allowed.
Tax refund
Money returned based on the taxpayer's overall tax payments and final liability.
Reimbursement
Money paid by an employer or organization under its arrangement.
2026 Rate Change You Must Handle
- Business: 72.5¢ before July 1; 76¢ from July 1.
- Medical/moving: 20.5¢ before July 1; 23.5¢ from July 1.
- Charity: 14¢ throughout 2026.
- The IRS announced the mid-year increase because of fuel-price changes.
- FirstMileage should calculate each trip using its applicable date, not one annual rate.
Frequently Asked Questions
Is the IRS mileage rate mandatory for employers?
No. It is a standard IRS rate and can be used as a reimbursement benchmark, but it is not a universal mandatory employer reimbursement rate.
Can I deduct mileage and gas together?
Not as a double deduction for the same business use when using standard mileage. Actual expenses are generally an alternative method.
Can parking and tolls be added?
Qualifying business parking and tolls are generally separately deductible. Medical and charitable rules also allow qualifying parking/tolls subject to their specific rules.
Can I deduct commuting miles?
Ordinary commuting between home and a regular workplace is generally not deductible business mileage.
Can I use standard mileage for a leased vehicle?
Yes, subject to IRS requirements; if chosen, the method generally continues for the entire lease including renewals.
Can ordinary employees deduct unreimbursed mileage?
Federal rules generally restrict miscellaneous itemized deductions for unreimbursed employee travel expenses, with specific exceptions.
Is medical mileage an IRS payment?
No. It can be part of a qualifying medical-expense deduction.
Is charitable mileage paid by the IRS?
No. The 14¢ rate is the statutory charitable deduction rate for qualifying service mileage.
What records should I keep?
Keep timely, reliable records of dates, purposes, destinations/locations, miles and supporting expenses as appropriate.
Does FirstMileage file my tax return?
No. FirstMileage organizes mileage and vehicle records and produces reports for the owner or tax professional. Final tax-return decisions remain the responsibility of the taxpayer and/or tax professional.
Turn mileage into a clean, tax-ready report
Track trips, apply the correct 2026 rate by date, record parking and tolls, compare methods and export structured reports.
Get started with FirstMileage