IRS Mileage Rate Changes for 2026

The IRS updates its standard mileage rates annually, and staying on top of these changes is essential for anyone who drives for business purposes. Here’s what you need to know for 2026.

2026 Standard Mileage Rates

For 2026, the IRS has set the following standard mileage rates:

• Business miles: 70 cents per mile
• Medical/moving miles: 21 cents per mile
• Charitable miles: 14 cents per mile

Actual Cost vs. Standard Mileage

You have two options for deducting vehicle expenses:

1. Standard mileage rate — simply multiply business miles by the IRS rate
2. Actual expense method — deduct the business percentage of gas, insurance, repairs, depreciation, and more

The standard mileage rate is simpler and often more beneficial for vehicles with moderate usage. The actual expense method can yield larger deductions for expensive vehicles or high operating costs.

What Counts as Business Miles?

• Driving between rental properties
• Trips to hardware stores for repairs
• Visiting prospective properties
• Meeting with tenants, lawyers, or accountants
• Trips to the bank for rental business

Not deductible: Commuting from home to your first business stop of the day.

How to Keep Compliant Records

The IRS requires a contemporaneous mileage log — meaning you should record trips as they happen, not from memory at tax time. Your log should include:

• Date of the trip
• Starting and ending locations
• Business purpose
• Total miles driven

Deedix’s GPS mileage tracker handles all of this automatically, calculating distances and applying the current IRS rate so you never miss a deduction.