The IRS did something it rarely does in 2026: it changed the standard mileage rate in the middle of the year. Business miles started the year at 72.5 cents. As of July 1, the rate rose to 76 cents per mile, which makes 2026 a split year with two business rates depending on when you drove.
For gig drivers, that is good news with a small paperwork wrinkle. Every business mile driven in the second half of 2026 is worth 3.5 cents more than one driven in June. But claiming it correctly means knowing how many of your miles fell in each half of the year, which makes a dated log more important than ever.
The 2026 IRS mileage rates
The IRS published the increase in Announcement 2026-11 (Internal Revenue Bulletin 2026-29), effective for miles driven on or after July 1, 2026. It applies to every kind of vehicle: gas, diesel, hybrid and fully electric.
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢/mi | 76¢/mi |
| Medical & moving | 20.5¢/mi | 23.5¢/mi |
| Charitable | 14¢/mi | 14¢/mi |
The rule that trips people up: the rate follows the date you drove, not the date you file, log the trip or get paid. A delivery on June 30 deducts at 72.5 cents even if you record it in August. A delivery on July 1 deducts at 76 cents. Your 2026 return, filed in 2027, will effectively carry two mileage subtotals.
Why the IRS changed the rate mid-year
Mid-year changes are rare. Before 2026, the IRS had changed the business rate mid-year only four times since 2005: in 2005, 2008, 2011 and 2022. Each time, the trigger was a sharp rise in fuel prices, and 2026 followed the pattern: the IRS said the increase reflects higher transportation costs, including recent fuel price increases.
That history is also a caution. Do not assume another change is coming, and do not adjust your own numbers ahead of the IRS. The 76-cent rate is official for the rest of 2026; the 2027 rate will be announced separately, usually in December.
Business mileage rate history
| Tax year | Business rate per mile |
|---|---|
| 2026 | 72.5¢ (Jan–Jun), 76¢ (Jul–Dec) |
| 2025 | 70¢ |
| 2024 | 67¢ |
| 2023 | 65.5¢ |
| 2022 | 58.5¢ (Jan–Jun), 62.5¢ (Jul–Dec) |
What the change means for your deduction
Take a driver who logs 2,000 business miles a month: 24,000 for the year, split evenly across the two halves.
- January through June: 12,000 miles × 72.5¢ = $8,700
- July through December: 12,000 miles × 76¢ = $9,120
- Total 2026 deduction: $17,820
Had the rate stayed at 72.5 cents all year, the same driver would have deducted $17,400. The mid-year increase adds $420 in deductions, worth roughly $100 to $130 in federal and self-employment tax, depending on bracket. Here is how it scales:
| Business miles in 2026 (split evenly) | Deduction at 72.5¢ all year | Actual 2026 deduction | Extra from the increase |
|---|---|---|---|
| 10,000 | $7,250 | $7,425 | $175 |
| 20,000 | $14,500 | $14,850 | $350 |
| 30,000 | $21,750 | $22,275 | $525 |
| 40,000 | $29,000 | $29,700 | $700 |
If you drove more in the second half of the year, the increase is worth more. Want your own number? The gig driver tax calculator uses both 2026 rates.
The record-keeping catch
A split rate only works if your log is dated. If you tracked 2026 as a single lump sum — "about 24,000 miles for the year" — you have no defensible way to apply two rates, and the safe choice is the lower rate on everything. A dated log lets you split cleanly at June 30, and it is what the IRS expects anyway.
How to handle the split at tax time
- Sort your miles by date. Everything through June 30 goes in the 72.5-cent bucket; everything from July 1 goes in the 76-cent bucket.
- Multiply and add. Multiply each bucket by its rate and add the two results. That total is your car and truck expense on Schedule C.
- Use the date you drove. A December delivery you record in January is still a 2026 mile at 76 cents.
- Add tolls and parking separately. The standard rate covers fuel, maintenance, insurance and depreciation, but not business tolls and parking, which you deduct on top.
Not sure which miles count in the first place? Our guide to deadhead miles covers the business miles between orders that platform summaries leave out.
Who can use the standard mileage rate
Most gig drivers can, but a few rules apply. You generally need to choose the standard rate in the first year you use a car for business; if you start with actual expenses, you cannot switch that car to the standard rate later. You also cannot use it if you run five or more vehicles at the same time, as a fleet does. Employees generally cannot deduct unreimbursed mileage on their federal return at all, which is one of several differences between reimbursement and deduction.
The other 2026 rate changes
- Medical and moving miles rose from 20.5¢ to 23.5¢. Medical miles only help if you itemize and your medical costs exceed 7.5% of your adjusted gross income. Moving mileage is limited to active-duty military and a few other groups, so most drivers will not use it.
- Charitable miles stayed at 14¢. That rate is set by statute rather than adjusted for costs, so it has not changed since 1998.
Frequently asked questions
What is the IRS mileage rate for 2026?
The 2026 business standard mileage rate is 72.5 cents per mile for miles driven January 1 through June 30, and 76 cents per mile for miles driven July 1 through December 31. The IRS raised it mid-year in Announcement 2026-11, citing higher fuel prices.
Which 2026 mileage rate do I use?
Use the rate in effect on the date you drove. Miles driven through June 30, 2026 are deducted at 72.5 cents, and miles driven from July 1, 2026 at 76 cents, regardless of when you logged them, got paid or file your return.
Does the 76-cent rate apply to electric vehicles?
Yes. The standard mileage rate applies to gasoline, diesel, hybrid and fully electric vehicles alike.
What were the 2026 medical and charitable mileage rates?
The medical and moving rate was 20.5 cents per mile through June 30, 2026 and 23.5 cents from July 1. The charitable rate stayed at 14 cents per mile, which is set by statute.
The bottom line
2026 has two business mileage rates: 72.5 cents through June 30, and 76 cents from July 1. The rate follows the date you drove. Every business mile in the second half of the year is worth a little more, but only if your records are dated well enough to show which half it belongs to. Track every mile, keep it timestamped, and split at June 30 when you file.
MileShield applies the correct rate to each shift based on when you drove, so your year-end Schedule C export already reflects the split. Tax rules can change; confirm your situation with a qualified CPA or enrolled agent before you file.