The IRS hasn’t announced the official 2026 standard mileage rate yet. But, yours truly has crunched some numbers based on past years, current trends, and analysis of our own mileage & expense data to spit out a prediction for you.
Why is this important? Every year the IRS mileage rate is adjusted to reflect the current average cost of driving for work. In 2025, that rate went to 70 cents, up 3 cents from 2024's rate of 67 cents. We'll get into what goes into these rates and more below.
If you’re searching for the 2026 IRS mileage rate, you’re probably planning ahead. That’s smart. Knowing the rate early helps you budget better, price your services, and get ready for tax season.
In this article, we’ll walk through:
Let's dive in.
The IRS mileage rate is the amount you can deduct on your taxes for every mile driven for business. It’s also called the standard mileage rate or tax mileage rate. This rate helps cover costs like:
Instead of adding up all your car expenses and figuring out what % was business and what % was personal, you can just track your business miles, multiply them by the rate for the year, and you've got your deduction. Often times, this can even lead to a larger deduction than if you itemized your vehicle expenses.
Based on current data, we predict that the standard mileage rate for 2026 will be between 71 and 73 cents. This would be a modest rise from the current IRS mileage rate of 70 cents in 2025.
Businesses and freelancers should prepare for these changes by updating their mileage tracking systems and adjusting reimbursement policies accordingly. Staying ahead ensures you maximize your tax benefits and avoid under-reimbursing employees or contractors.
The IRS uses a detailed methodology to set mileage rates, aiming to reflect the average costs of operating a vehicle. This includes fuel, maintenance, depreciation, insurance, and other expenses.
Understanding this methodology can help taxpayers anticipate changes and plan their budgets better.
Several factors impact the IRS’s calculations:
When any of these costs rise or fall significantly, the IRS adjusts the mileage rate accordingly.
Beyond vehicle costs, broader economic indicators influence the IRS’s decisions:
Keeping an eye on these factors can help businesses and individuals anticipate mileage rate changes before the IRS announces them.
Over the past five years, the IRS mileage rate has steadily inceased, reflecting rising costs for drivers, especially those who use their personal vehicle for business.
In 2021, the rate was just 56 cents per mile. Since then, it has jumped nearly every year, reaching 70 cents per mile in 2025.
One of the biggest shifts came in 2022, when the IRS issued a rare mid-year increase due to record-high fuel prices. The first half of 2022 used a rate of 58.5 cents per mile, but by July, it rose to 62.5 cents, a move not often seen unless there’s significant economic impact.
Since then, the IRS has continued to raise the rate year over year, responding not only to fuel prices but also to growing costs of vehicle maintenance, insurance, and depreciation. With the 2025 rate now sitting at 70 cents per mile, the trend points to further increases ahead.
This upward trend matters. Even small increases can lead to hundreds or thousands of dollars in tax savings for self-employed drivers, business owners, and gig workers.
As established, the IRS business mileage rate sets how much you can deduct per mile. A few cents may not seem like much, but over thousands of miles, it adds up.
For example:
That’s why staying updated on the IRS mileage rate matters. It affects:
This deduction is one of the largest write-offs for self-employed drivers.
The IRS won’t just take your word for it. To claim the standard mileage deduction, you need to keep a detailed mileage log of every business-related trip you take. This is required whether you’re deducting miles for rideshare, delivery, sales visits, or any other self-employed or small business activity.
Your mileage log comes with some strict requirements according to the IRS. Each mileage log must include:
You can log this info manually in a paper notebook or spreadsheet. But that gets tedious fast, especially if you drive every day or forget to log a few trips. That’s why many independent workers rely on automated mileage tracking apps like Everlance.
With Everlance, your phone detects when you’re moving and starts tracking trips in the background. You don’t have to remember to press “Start” and “Stop” every time you drive. Just swipe to classify the trip as business or personal, and your mileage log is ready for tax season.
In short, it takes the pressure off you and keeps your records clean, accurate, and IRS-compliant.
The IRS usually releases the next year’s mileage rate in mid-December. But waiting until then to start tracking your miles could leave a lot of money on the table, especially if you’ve been driving for business all year.
If you start tracking now, you’ll:
Even if the 2026 mileage rate changes, your log will already have the dates needed to apply the right rate to each trip. No guesswork. No gaps. Just tax savings made easy.
Everlance helps over 4 million drivers automatically track their miles and build IRS-compliant mileage logs, completely hands-free.
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Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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