2026 business mileage: split your log at July 1

Business owners using the optional standard mileage method need two rate periods for 2026: 72.5 cents per eligible business mile from January 1 through June 30, and 76 cents from July 1 through December 31. The IRS's current mileage table reflects the change, and Announcement 2026-11 establishes the July 1 effective date.

That distinction matters for a Houston consultant visiting clients, a service business traveling between job sites, or another owner with qualifying business driving. Applying 76 cents to the entire year would overstate the mileage calculation for the first six months.

Calculate each period separately

Suppose an eligible sole proprietor has 4,000 qualifying business miles in January through June and 3,000 in July through December:

• January–June: Eligible business miles: 4,000; Rate: $0.725; Mileage amount: $2,900.
• July–December: Eligible business miles: 3,000; Rate: $0.76; Mileage amount: $2,280.
• Total: Eligible business miles: 7,000; Rate: Two rates; Mileage amount: $5,180.

This is an illustration of the mileage calculation, not a guaranteed deduction. Method eligibility, the nature of each trip and other tax rules must still be satisfied. A $5,180 deduction also does not mean a $5,180 refund.

Your log needs dates and business purpose

Export your mileage records with the trip date, destination, business purpose and mileage. Retain the information needed to distinguish business use from personal use and normal commuting. A calendar entry or customer appointment can help explain a trip, but a total annual estimate is a weak substitute for contemporaneous records.

For the split-year calculation, the critical control is the trip date. Do not split the total annual mileage in half unless the actual records support that result.

Check the method before multiplying miles

The standard mileage method is optional, and it is not available in every situation. Prior depreciation elections and how the vehicle was first used can affect your options. Owners using actual expenses need a different calculation. The IRS discusses these restrictions and recordkeeping in Publication 463.

Do not claim the standard mileage amount and then add the same vehicle's gasoline, routine repairs and depreciation again. Certain separately allowable costs require their own analysis. Employee reimbursement arrangements also have documentation rules; the federal mileage rate is not automatically a universal requirement to pay every employee that amount.

What to do this month

Download the year-to-date log, separate trips at July 1, review missing business purposes and reconcile any reimbursements. Preserve the original export alongside the working calculation.

If vehicle costs are mixed into personal spending, bookkeeping support can help organize the records. Book a Tax N Tips consultation before choosing a method or estimating your year-end tax.

Sources checked September 5, 2026.