2026 is a split year. The business rate is 72.5 cents a mile through June and 76 cents from July. Enter each half separately, because a single blended rate gives the wrong answer.
The IRS has split a tax year only three times since 2011: in 2011, 2022 and now 2026. Most online calculators hard-code one rate per year, so they apply either 72.5 or 76 cents to all twelve months. On 13,000 business miles that mistake is worth roughly 455 dollars.
To calculate your 2026 mileage deduction, multiply the business miles you drove between January and June by 72.5 cents, multiply the business miles you drove between July and December by 76 cents, and add the two together. Business use percentage applies to both halves.
The formula is (first-half miles × business use × 0.725) + (second-half miles × business use × 0.76). Worked through with the numbers above: 6,200 miles in the first half at 85 percent business use gives 5,270 business miles, which at 72.5 cents is $3,820.75. The second half, 6,800 miles at 85 percent, gives 5,780 business miles, which at 76 cents is $4,392.80. Together that is $8,213.55.
The standard mileage rate is one of two methods. The other is actual expenses, where you deduct the business share of fuel, insurance, repairs, tyres and depreciation. You may only choose the standard rate if you use it in the first year the vehicle is available for business. Under the actual expense method your vehicle costs split across Schedule C lines 9, 13 and 20a, which means line 9 alone understates what the vehicle really cost you.
For scale, sole proprietor auto repair businesses reported 5.65 percent of business receipts as car and truck expenses for tax year 2023, a mean of $5,011 across 465,852 returns. That is the single best benchmark that exists for a one-person shop, and it comes from the IRS rather than from a survey.
Business rates only. Note the three split years.
| Period | Rate | Source |
|---|---|---|
| 2026, July 1 to December 31 | 76.0¢ | Announcement 2026-11, IRB 2026-29 |
| 2026, January 1 to June 30 | 72.5¢ | Notice 2026-10 |
| 2025 | 70.0¢ | IRS standard mileage rates |
| 2024 | 67.0¢ | IRS standard mileage rates |
| 2023 | 65.5¢ | IRS standard mileage rates |
| 2022, July 1 to December 31 | 62.5¢ | IRS standard mileage rates |
| 2022, January 1 to June 30 | 58.5¢ | IRS standard mileage rates |
| 2021 | 56.0¢ | IRS standard mileage rates |
One citation trap worth knowing: the IRS rate table labels the July 2026 source as a news release, but the link resolves to the Internal Revenue Bulletin. The correct citation is Announcement 2026-11, IRB 2026-29. The charitable rate is frozen at 14 cents by statute, section 170(i), and is not cost-based.
2026 is a split year. The business standard mileage rate is 72.5 cents per mile for January 1 through June 30, and 76 cents per mile for July 1 through December 31. You must apply each rate to the miles you actually drove in that half of the year. Using a single blended rate for the whole year will produce the wrong number.
Because mid-year rate changes are rare. The IRS has only split a year three times since 2011, in 2011, 2022 and 2026. Most calculators hard-code one rate per year, so they silently apply either 72.5 or 76 cents to all twelve months. On 13,000 business miles that error is worth about 455 dollars in either direction.
Only in one direction, and only if you started correctly. If you want to use the standard mileage rate for a vehicle you own, you must choose it in the first year the vehicle is available for business use. In later years you may switch to actual expenses, but if you used actual expenses with accelerated depreciation in year one you cannot switch back to the standard rate for that vehicle.
Driving from one job to another is business mileage. Driving to pick up parts is business mileage. Driving from your home to your first job of the day is commuting and is generally not deductible, unless your home is your principal place of business. Keep a contemporaneous log with date, destination, purpose and odometer readings, because the IRS can and does disallow reconstructed logs.
The IRS Statistics of Income tables show that sole proprietor auto repair businesses reported 2.33 billion dollars of car and truck expenses across 465,852 returns for tax year 2023. That is a mean of 5,011 dollars per return, and 5.65 percent of business receipts. If your number is far below that, you are probably not logging all your miles.
No. The charitable rate is fixed at 14 cents per mile by statute, section 170(i) of the tax code, and it does not move with fuel or vehicle costs. It has been 14 cents since 1998. Only Congress can change it.
This is general information, not tax advice. Rates and rules change, and your situation may differ. Confirm with the linked IRS source or a tax professional before filing.
Join Mechanics Alliance free to get the full guide library, contract and inspection templates, and our research on what mobile work actually costs to run.
Join free More tools