If you use your vehicle for business, now is a good time to make sure your 2026 mileage records are up to date.
The IRS standard business mileage rate is 76 cents per mile for qualifying business miles driven from July 1 through December 31, 2026. For the first half of the year, the rate was 72.5 cents per mile.
That means 2026 has two business mileage rates:
| Business Miles Driven | Rate |
|---|---|
| January 1–June 30, 2026 | 72.5¢ per mile |
| July 1–December 31, 2026 | 76¢ per mile |
For business owners and self-employed taxpayers using the standard mileage method, the key is making sure your records clearly separate miles driven during the first and second halves of the year.
Why Your Mileage Records Matter This Year
Mileage can be easy to overlook during the year. A trip to meet a customer, pick up supplies, visit a job site, or stop by the bank may not seem significant on its own. But those business miles can add up.
Because the mileage rate changed mid-year, simply knowing your total business miles for 2026 may not be enough. You should be able to determine which miles were driven before July 1 and which were driven after.
A good mileage log should generally include the:
- Date
- Destination
- Business purpose
- Miles driven
Whether you use an app, spreadsheet, bookkeeping software, or a written log, consistency is what matters.
What Counts as Business Mileage?
Business mileage generally includes driving for a legitimate business purpose, such as visiting customers, traveling between business locations, meeting vendors, or picking up supplies.
One important exception: your regular commute between home and your usual workplace is generally considered personal mileage and is not deductible.
Rules can become more complicated if you have a qualifying home office, temporary work locations, or multiple business locations, so it is worth asking your tax professional if you are unsure whether a particular trip qualifies.
Standard Mileage or Actual Expenses?
The standard mileage rate is intended to account for more than fuel. It also reflects costs such as maintenance, repairs, insurance, and depreciation.
Some taxpayers may instead qualify to use the actual expense method, which generally involves deducting the business-use portion of actual vehicle costs.
Neither method is automatically better.
If you drive a lot of business miles, the standard mileage method may be simple and beneficial. If your vehicle has significant operating costs, the actual expense method may produce a different result.
A Good Time for a Mileage Checkup
Before year-end, take a few minutes to make sure:
- Your mileage records are current.
- You can separate miles driven before and after July 1.
- Each trip has a documented business purpose.
- Personal and commuting miles are kept separate.
A little cleanup now can make tax season much easier.
If you have questions about business mileage deductions, vehicle expenses, or whether the standard mileage or actual expense method makes more sense for your business, contact our team. We’re happy to help you review your options.
Disclaimer: This article is intended for general informational purposes only and should not be considered individualized tax, accounting, or financial advice.
Editorial Note: This article was drafted using content and insights provided by Tasha Spears, with support from AI tools, including ChatGPT, for drafting and refinement.
