MilometryTwo IRS mileage rates in one year: how to split 2026
The IRS raised its business mileage rate from 72.5 to 76 cents on 1 July 2026, so a 2026 claim has two halves. Which miles take which rate, and why the date of the drive is now part of the sum.
General information, not advice. Written as general information and correct as far as we know on 9 November 2026. Tax rules change, and how they apply depends on your own circumstances. This is not tax, legal or financial advice: check with an accountant, a tax adviser or HMRC before you rely on it.
Most years the IRS publishes one standard mileage rate in December and leaves it alone for twelve months. 2026 is not most years. The business rate started the year at 72.5 cents a mile, and from 1 July 2026 it rose to 76 cents. The IRS gave its reason plainly in Announcement 2026-11: recent increases in the price of fuel.
That leaves anyone claiming American business miles for 2026 with a year in two halves, and a mileage total on its own is no longer enough to work out the figure.
The 2026 rates
| Period | Business | Medical and military moving | Charity |
|---|---|---|---|
| 1 January to 30 June 2026 | 72.5 cents | 20.5 cents | 14 cents |
| 1 July to 31 December 2026 | 76 cents | 23.5 cents | 14 cents |
The charity rate does not move because it is not the IRS's to set. It is fixed by statute at 14 cents a mile under section 170(i) of the Internal Revenue Code, and has been for years.
Which miles take which rate
The rule in Announcement 2026-11 turns on when the expense was paid or incurred. The new rates apply to transportation expenses paid or incurred on or after 1 July 2026. Everything before that date stays under Notice 2026-10, the original rates published for the year.
In practice, for a self-employed driver that means the date of the drive. A trip on 30 June is worth 72.5 cents a mile; the same trip on 1 July is worth 76 cents. So a year's claim is two sums added together:
- Business miles from 1 January to 30 June, multiplied by 72.5 cents
- Business miles from 1 July to 31 December, multiplied by 76 cents
Take a contractor who drove 6,000 business miles in the first half and 7,000 in the second. That is 6,000 at 72.5 cents ($4,350) plus 7,000 at 76 cents ($5,320), a total of $9,670. Using 76 cents across the whole year would overstate the claim by $210; using 72.5 cents throughout would leave $245 on the table.
Employers paying an allowance
The announcement also covers mileage allowances paid to employees. The new rates apply to allowances paid on or after 1 July 2026 for expenses the employee incurred on or after that date. A June trip reimbursed in July is still a June trip, so it belongs at the old rate.
That matters for an accountable plan. An allowance at or below the standard rate, properly substantiated, is not treated as wages; anything above it is. An employer that moved straight to 76 cents for every outstanding claim in July could have paid part of each June trip above the rate in force at the time.
What has not changed
Everything else in Notice 2026-10 stands. The usual conditions for using the standard rate still apply, as IRS Topic 510 sets out: you must own or lease the car, you cannot be running five or more cars at once, and for a car you own you must choose the standard rate in the first year the car is used for business. Most employees still cannot deduct unreimbursed car expenses at all; the self-employed report theirs on Schedule C or Schedule F.
The records requirement has not changed either, but its weight has. A log that only shows a year's total can no longer be priced; it has to show the date of each trip, so each mile lands in the right half.
Keeping the split simple
Every trip in Milometry is recorded with its date, so the miles driven before and after 1 July can be told apart rather than reconstructed from memory in April. You still apply the right rate to each half; a dated log just makes sure that is possible.
General information, not legal or tax advice. Check your own position with the IRS or a qualified tax professional.
