IRS Announces Two Business Mileage Rates for 2026: What Business Owners Need to Know

The IRS has announced an important change to the standard mileage rate for business driving during 2026. Unlike prior years, there will be two different business mileage rates depending on when the miles are driven.

2026 Business Mileage Rates

For business use of a vehicle, the standard mileage rates are:

• 72.5 cents per mile for business miles driven January 1 through June 30, 2026
• 76 cents per mile for business miles driven July 1 through December 31, 2026

Because the applicable rate depends on when the mileage occurred, it is especially important to maintain accurate mileage records throughout the year.

What Should Your Mileage Log Include?

The IRS recommends keeping a contemporaneous mileage log that includes:

• The date of each trip
• The business destination
• The business purpose of the trip
• The number of business miles driven

For 2026, your records should also separately track:

• Total business miles driven January 1 through June 30
• Total business miles driven July 1 through December 31

Keeping these totals separate will allow the correct mileage rate to be applied to each portion of the year.

What to Provide at Tax Time

When submitting your business tax information for your 2026 tax return, please include:

• Your total business miles driven from January 1 through June 30, 2026
• Your total business miles driven from July 1 through December 31, 2026

Providing these figures separately will help ensure your vehicle deduction is calculated accurately.

Questions About Deductible Business Mileage?

Maintaining complete and accurate mileage records is one of the simplest ways to maximize your allowable vehicle deduction while complying with IRS requirements.

If you have questions about mileage tracking, what qualifies as deductible business mileage, or the records you should maintain, our team is happy to help. Contact PBG Advisors to discuss your situation.