Mileage Deduction 2026
2026 is the year the mileage rate moved in the middle of the year, so the old one-rate math gets it wrong. Split your miles, apply the right rate to each half, and see what is actually deductible.
2026 rates: business 72.5¢ for the first half of the year, 76¢ from July 1. Medical 20.5¢ then 23.5¢. Moving 20.5¢ then 23.5¢, active-duty military only. Charity 14¢ all year, it did not move.
How the math works
- Split-year rates (IRS 2026): business 72.5¢ per mile through June 30, 76¢ from July 1. Medical 20.5¢ then 23.5¢. Moving 20.5¢ then 23.5¢ and only for active-duty military moves under orders. Charity is a flat 14¢ for the whole year.
- Business miles go on Schedule C, Schedule F, or Schedule E and reduce self-employment tax as well as income tax. Commuting from your home to your regular main job is never deductible, no matter who employs you.
- W-2 employees: unreimbursed mileage is not deductible for 2026, the suspension of miscellaneous itemized deductions was made permanent in 2025. An accountable plan that reimburses at the IRS rate is the fix, the reimbursement is tax-free.
- Medical miles are an itemized medical expense: only the amount above 7.5% of your AGI survives, and only if you itemize.
- Charity miles need itemizing too, at the flat 14¢ rate; the standard-deduction filer gets nothing from volunteer driving.
Can I deduct mileage for my W-2 job in 2026?
Not as an employee. Unreimbursed employee expenses, including mileage, have been suspended since 2018 and the suspension became permanent in 2025, so 2026 is not the year it comes back. Ask your employer for an accountable reimbursement plan at the IRS rate, that money is tax-free to you and deductible to them.
Why did the business rate split in half for 2026?
Fuel prices moved, so the IRS issued a mid-year increase: 72.5¢ per mile for January through June, 76¢ from July 1 through December. That makes 2026 the first year where the split matters: 3,000 miles in the first half plus 3,500 in the second half is worth $4,835.00, and averaging all 6,500 miles at a single rate gets it wrong.
How much of my medical mileage survives?
Only the part above 7.5% of your AGI, and only if you itemize. At $60,000 AGI the floor is $4,500: $1,500 of medical mileage is wiped out entirely. Combine it with out-of-pocket medical bills, that is how you clear the floor.