2026 IRS Business Mileage Rates: 72.5¢ (H1) Then 76¢ (H2)

By Shortell Designs · Updated October 2026

Split-year 2026 business standard mileage rates

For business miles in tax year 2026, the IRS uses two rates:

IRS.gov confirms both rates: the IRS standard mileage rates page lists 72.5 cents for Jan. 1 – June 30, 2026 and 76 cents for July 1 – Dec. 31, 2026, and Announcement 2026-11 in IRB 2026-29 applies the 76-cent business rate to expenses paid or incurred on or after July 1, 2026.

Apply the rate based on the date of the trip, not the date you fill out a spreadsheet. Miles driven in March use 72.5¢. Miles driven in August use 76¢. A single annual total multiplied by one rate is the wrong method for 2026.

Charitable, medical, and other non-business rates are separate topics; this article focuses on the business standard mileage rate that most W-2 + 1099 side-hustle logs need.

How to keep a split-year mileage log

1. Record date, business miles, and business purpose for each trip (and from/to if you use that style of log).
2. Subtotal miles for Jan 1 – Jun 30 and Jul 1 – Dec 31 separately.
3. Deduction estimate ≈ (H1 miles × 0.725) + (H2 miles × 0.76).
4. Re-check the live IRS standard mileage rates page and the notice/announcement text before filing.

If you use a mileage app, export by date range so the June 30 / July 1 split is clear. Do not count the commute to your W-2 day job as business miles for the side hustle.

Official sources to re-check