IRS Mileage Rate 2026 for TLC Drivers: 72.5¢ and 76¢

In short: for 2026 the IRS business mileage rate is 72.5¢ a mile for January 1–June 30 and 76¢ a mile for July 1–December 31 (IRS standard mileage rates). So you must split your 2026 business miles at July 1 and multiply each half by its own rate. For your 2025 return, the rate is 70¢ for the whole year. Rates as of 2026-10-12, from TLC Help's rates file.

The standard mileage rate is a fixed amount per business mile you can deduct instead of adding up your real car costs (gas, repairs, insurance, depreciation or lease payments). It is optional. Whether it beats your actual costs is a separate question — see standard mileage vs actual expenses. This page is general information, not tax advice.

Why 2026 has two rates

The IRS set the 2026 rate at 72.5¢ in December 2025, "up 2.5 cents from 2025," based on its annual study of fixed and variable costs of running a car (IR-2025-128). Then in July 2026, Announcement 2026-11 raised the business rate to 76¢ for costs "paid or incurred … on or after July 1, 2026." The IRS says the change "results from recent increases in the price of fuel." Miles before July 1 stay at 72.5¢ (IRB 2026-29).

The IRS has done a mid-year change before: in 2022 the rate went from 58.5¢ to 62.5¢ on July 1. History by year: IRS mileage rate history.

Split your log at July 1: a worked example

This is a made-up driver, to show the arithmetic only.

Amina drives for an app in 2026. Her mileage log shows 20,000 business miles from January to June and 21,000 business miles from July to December.

• January–June: 20,000 × $0.725 = $14,500
• July–December: 21,000 × $0.76 = $15,960
• Mileage deduction for 2026: $30,460, plus her business tolls and parking (see below).

If she had used a single rate for the whole year, she would get a wrong number. That is why your log needs dates, not just a yearly total. A weekly log is fine: Publication 463 says a log kept weekly that accounts for use during the week counts as a timely record (IRS Pub 463).

The estimator asks for miles before and after July 1 separately for 2026, and shows the mileage figure next to your actual costs.

The rate covers electric cars and hybrids too

Many TLC vehicles are hybrids or EVs. The IRS says the rates apply to fully electric and hybrid automobiles, as well as gasoline and diesel vehicles (IR-2025-128). An EV driver gets the same per-mile rate as a gas car under this method. When you use the rate, the IRS says you can't also deduct gasoline and other operating costs for that car, so ask a preparer before adding charging costs on top.

What you can add on top: tolls and business parking

Tolls and business parking are extra. The IRS says parking fees and tolls for business use are separately deductible "whether you use the standard mileage rate or actual expenses" (IRS Topic 510). But:

• Parking at your regular place of work is commuting and not deductible (Pub 463).
• Tolls the passenger or app reimbursed you for are not your cost. TLC rule 59D-17(c) says a high-volume app must pay you back the entire toll you paid during a dispatched trip, so check your pay statement before you count a toll as your expense. More: can I deduct tolls and parking?

With the standard mileage rate you cannot also deduct gas, repairs, insurance, registration, depreciation or lease payments for that car in that year (Pub 463). Car loan interest is handled differently — see the deductions list.

Which miles count, and which don't

• Count: miles driving to a pickup, miles with a passenger, and miles between trips while you are working.
• Don't count: commuting. Publication 463 says costs of getting between your home and your main or regular place of work are personal commuting expenses. How this applies to a driver who starts working as soon as they leave home depends on facts — ask a preparer if you are not sure.
• Personal trips in the same car are not business miles. If you use the car for both, only the business share counts.

Who can use the standard rate

• You can use it for a car for hire such as a taxi (Pub 463).
• You must choose it in the first year the car is used in your business. For a leased car, if you choose it, you must use it for the whole lease, including renewals (IR-2025-128).
• You can't use it if you operate five or more cars at the same time (a fleet), or after claiming certain depreciation (MACRS, Section 179, bonus depreciation) on the car (IRS Topic 510).

Renting a TLC car week to week raises its own questions: can I deduct my TLC car rental?

Where the mileage deduction goes on your return

Self-employed drivers deduct car expenses on Schedule C (Form 1040), according to IRS Topic 510. Because the deduction lowers your Schedule C profit, it also lowers the profit that self-employment tax is figured on, not only your income tax. The choice to use the standard rate is made by the due date of your return, including extensions, and Publication 463 says you can't revoke it for that year.

Common mistakes with the 2026 rate

• Using 76¢ for the whole year. Only miles from July 1 get 76¢. Miles before that get 72.5¢.
• Using the app's trip miles as your total. They leave out miles driving to pickups. Use your own log.
• Counting both the rate and gas receipts. With the standard rate, gas and repairs for that car are not deducted again.
• Deducting a toll the app paid back. Check your pay statements first.
• Using a 2026 rate on a 2025 return. For 2025, it is 70¢ for every business mile.

Records to keep

The app's trip mileage only covers miles with trips. Your own log fills in the miles to pickups. Publication 463 says you can't deduct amounts you approximate or estimate, so a real log matters.