IRS Mileage Rate 2026 Explained: 72.5 & 76 Cents + 5-Car Rule

Summary

For 2026 the IRS set two business mileage rates: 72.5 cents a mile for January 1 to June 30 and 76 cents a mile for July 1 to December 31. A business that uses five or more cars at the same time can’t use the standard mileage rate for any of them and may deduct actual expenses instead, and either way the IRS expects records made at or near the time of each trip.

Key takeaways

• Two rates in 2026: 72.5 cents a mile for business trips from January 1 to June 30, and 76 cents a mile from July 1 to December 31. Use the rate that applied on the date of each trip.
• Electric and hybrid too: the rates apply to electric and hybrid vehicles as well as gas and diesel.
• The five-car rule: IRS Publication 463 says that if you use five or more cars at the same time, as in fleet operations, you can’t use the standard mileage rate for any of them. You may be able to deduct actual expenses instead. Using cars at different times is treated differently.
• Standard mileage rate method: business miles times the rate, plus business parking fees and tolls. For a car you own, you must choose it in the first year the car is available for use in your business.
• Actual expense method: the business share of costs like gas, oil, repairs, tires, insurance, registration, lease payments or depreciation. If you qualify for both, the IRS suggests figuring it both ways.
• Keep a mileage log: the date, the miles, the destination and the business purpose, recorded at or near the time of the trip. A log kept weekly counts as timely. GPS data helps, but add the business purpose.

This video walks through the main points of our guide, IRS Standard Mileage Rate 2026 and Fleet Mileage Records, which links every official source. Rates change, so check the IRS page each January and July. This is general information, not tax advice; a CPA or enrolled agent can help with your situation.