Mileage Reimbursement Calculator
Multiply your miles by the correct 2026 IRS rate — including the July 1 mid-year increase — or any custom employer rate.
2026 IRS rates per Notice 2026-10 and the July 13, 2026 mid-year adjustment.
2026 IRS standard mileage rates
2026 is a two-rate year: the IRS set the business rate at 72.5¢ in January, then raised it mid-year — effective July 1, 2026 — to 76¢ in response to vehicle-cost inflation. Use the rate matching when the miles were driven:
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢ | 76¢ |
| Medical / military moving | 20.5¢ | 23.5¢ |
| Charitable (fixed by statute) | 14¢ | 14¢ |
What counts as business miles
- Counts: driving between job sites, to client meetings, to a temporary work location, errands for the employer (supplies, bank runs, deliveries).
- Never counts: your normal commute between home and your regular workplace — even with the company logo on the door.
- Keep a contemporaneous log (date, purpose, start/end, miles). Apps or odometer photos both satisfy the IRS substantiation habit; reconstructed logs are where deductions die in audits.
Employer reimbursement vs. tax deduction
- Employers may reimburse at any rate. Paid under an accountable plan at or below the IRS rate, reimbursements are tax-free to you. Anything above the IRS rate is taxable wages.
- No federal law forces reimbursement (unless unreimbursed costs would drop you below minimum wage) — but California, Illinois and Massachusetts require employers to cover necessary business expenses, mileage included.
- W-2 employees can no longer deduct unreimbursed mileage on federal returns (suspended since 2018) — which makes actually getting reimbursed matter more.
- Self-employed drivers deduct business miles directly on Schedule C, choosing between the standard rate and actual expenses (depreciation, gas, insurance) — the standard rate wins for most economical vehicles.
Frequently asked questions
What is the current IRS mileage rate right now?
For business miles driven July 1 – December 31, 2026: 76 cents per mile. Miles driven January–June 2026 use 72.5 cents. Mid-year splits like this also happened in 2011 and 2022 — always match the rate to the drive date, not the reimbursement date.
Does my employer have to use the IRS rate?
No — the IRS rate is a tax-free ceiling, not a mandate. Employers commonly adopt it for simplicity, but may pay less (or more, with the excess taxed). In CA, IL and MA, reimbursement must fully cover actual necessary expenses, and the IRS rate is the customary safe harbor.
Can I claim mileage for a second job or gig driving?
Driving between job 1 and job 2 the same day is deductible/reimbursable travel. Gig platform drivers (self-employed) deduct miles with a delivery/passenger purpose on Schedule C — including repositioning between rides for many situations — but not the drive from home to your starting area under commuting rules.
Why did the rate change mid-year in 2026?
The IRS occasionally issues a special mid-year adjustment when vehicle operating costs move sharply; on July 13, 2026 it raised the business rate to 76¢ effective July 1. Reimburse January–June trips at 72.5¢ and later trips at 76¢.
Last reviewed: 2026-08-20 · Report an issue