Quick Answer
For eligible business driving from January 1 through June 30, 2026, the standard mileage rate is 72.5 cents per mile.
For eligible business driving from July 1 through December 31, 2026, the rate increases to 76 cents per mile. You’ll need to keep the mileage from each half of the year separate when calculating eligible business vehicle expenses. (IRS)
Why did the mileage rate change in the middle of the year?
The IRS usually announces one mileage rate for the entire calendar year.
This year is different.
The IRS increased the rate because of rising fuel costs. The new 76-cent business rate applies to eligible transportation expenses incurred on or after July 1, 2026. Mileage driven before that date remains subject to the original 72.5-cent rate. (IRS)
For business owners, the change means there’s one more line to draw in your records.
You cannot simply total all of your 2026 business miles and multiply them by the new rate. You’ll need one total for the first half of the year and a second total for the remainder of the year.
That small distinction can prevent confusion when it’s time to prepare your tax return.
What should I do with the mileage I’ve already driven?
Start by reviewing your records through June 30.
You don’t need to rebuild your entire system. You simply need to make sure you can clearly separate:
- Business miles driven from January 1 through June 30
- Business miles driven from July 1 through December 31
Should you use a mileage-tracking app, check whether it updated the rate automatically. If you instead use a spreadsheet, add a column showing which rate applies. And if you keep a handwritten mileage book, mark July 1 clearly so you know where the new rate begins.
This is the kind of small adjustment that is much easier to make now than several months from now.
How much of a difference can the new mileage rate make?
Let’s look at a simple example.
Imagine a local business owner drives 3,000 eligible business miles during the first half of 2026 and another 3,000 during the second half.
The first 3,000 miles would be calculated at 72.5 cents per mile:
3,000 × $0.725 = $2,175
The second 3,000 miles would be calculated at 76 cents per mile:
3,000 × $0.76 = $2,280
The total calculated mileage expense would be:
$4,455
Using the earlier rate for all 6,000 miles would reduce the calculation by $105.
For one driver, that difference may not feel dramatic. For a company with several employees on the road, frequent service calls, deliveries, client visits, or multiple job sites, it can become much more meaningful.
The real value, however, isn’t only in the higher rate. It’s in having records that clearly support the calculation.
Which trips may count as business mileage?
The purpose of the trip matters.
Eligible business driving may include travel:
- Between your office and a customer’s location
- From one job site to another
- To purchase business supplies
- To make a business bank deposit
- To attend a professional meeting or training session
- Between multiple business locations
- To deliver products or meet with vendors
A contractor may leave Kenhorst for a project in Wyomissing, stop at a supplier in Sinking Spring, and then travel to another job in West Reading.
A photographer may drive from a studio in Reading to a customer’s business.
A consultant may spend the day visiting several clients throughout Greater Reading.
Those trips may qualify when they have a clear business purpose and are properly documented.
Your regular trip from home to your usual workplace is generally considered commuting rather than business mileage. Certain situations involving home offices, temporary workplaces, and multiple business locations can be more complicated and should be reviewed individually.
When you’re unsure, don’t guess. Make a note about the trip and ask us.
What should a good mileage record include?
A good mileage log tells the story of the trip.
It should include:
- The date
- Where you started
- Where you went
- Why the trip was business-related
- The number of business miles driven
- Any related tolls or parking expenses
“Client meeting in Wyomissing” is more useful than simply writing “business.”
“Picked up materials for customer project in Reading” is better than “supplies.”
Those details may seem unnecessary while the trip is still fresh in your mind. Six months later, they can make all the difference.
The IRS requires appropriate records to support eligible business transportation expenses. (IRS)
Do I need a special mileage app?
No single system works for everyone.
Some of our clients prefer an app that automatically tracks each trip. Others use a spreadsheet, calendar, accounting platform, or paper log kept in the vehicle.
The most effective system is the one you’ll consistently maintain.
We often recommend reviewing your mileage once a week. That gives you a chance to identify personal and business trips while you still remember where you went and why.
Waiting until tax season usually means trying to reconstruct the year from calendars, receipts, bank statements, and memory. That takes more time and can leave important gaps.
A few minutes each week can save hours later.
What should employers do about employee mileage reimbursements?
The IRS mileage rate is optional. Employers are not automatically required to reimburse employees at 76 cents per mile simply because the federal rate changed.
Each company should review its own reimbursement policy.
Should your business use the IRS rate, make sure:
- Mileage before July 1 is calculated at the earlier rate
- Mileage beginning July 1 uses the new rate
- Employees document the date, destination, mileage, and business purpose
- Reimbursement forms and payroll systems are updated
- Employees understand when the change became effective
A clear written policy helps everyone understand what qualifies, what records are required, and when expense reports must be submitted.
This is especially important for businesses with salespeople, service technicians, delivery staff, or employees who regularly use personal vehicles for company business.
Should I use mileage or actual vehicle expenses?
Some business owners may qualify to use the standard mileage method. Others may use the actual-expense method.
Actual expenses may include the business-use portion of costs such as:
- Fuel
- Repairs and maintenance
- Insurance
- Registration
- Depreciation or lease expenses
- Other eligible vehicle costs
One method isn’t automatically better for every business.
The right choice may depend on how much you drive, what the vehicle costs to operate, how it is owned, how it has been treated in previous years, and whether it is used for both business and personal purposes.
This is where a conversation can be more valuable than a quick online answer.
At A Mazzo Accounting Services, we look at the situation surrounding the numbers—not just the rate itself.
What happens when mileage records are incomplete?
This is where many good business owners run into trouble.
You know you drove for business. You remember customer visits, supply runs, and meetings. But the details were never written down.
By tax season, the calendar shows an appointment, the credit card statement shows a purchase, and the odometer shows thousands of additional miles—but the full story is missing.
We understand how that happens.
Most business owners spend their time taking care of customers, managing employees, solving problems, and keeping work moving. Mileage logs often fall to the bottom of the list.
Our advice is not to panic or invent numbers.
Gather the records you do have. Review your calendar, invoices, customer appointments, receipts, and other supporting information. Then talk with us about what can reasonably be documented and how to improve the process going forward.
The goal is not perfection. The goal is a reliable system that gives you confidence in your records.
Why does this matter beyond one tax deduction?
Mileage is only one small piece of your business accounting.
However, it can reveal a larger question:
Are your records giving you a clear picture of what it costs to operate your business?
When vehicle expenses, reimbursements, receipts, and travel records are handled consistently, your books become more useful.
You can better understand:
- What it costs to serve customers in different locations
- Whether certain jobs require more travel than expected
- How much employees are being reimbursed
- Whether your pricing reflects your real operating costs
- What information will be needed at tax time
Good accounting is not just about filing forms.
It’s about helping you make informed decisions throughout the year.
That’s part of the hands-on, personal approach we bring to our clients. Tony Mazzo has worked in accounting for more than 30 years, including roles as an accountant, accounting manager, and corporate controller. His focus has always been helping people understand their numbers in terms that make sense to them.
What should I do now?
You don’t need to overhaul everything.
Start with these five steps:
- Record your odometer reading from around July 1, should you have it available.
- Separate your January–June mileage from your July–December mileage.
- Update your tracking app, spreadsheet, or reimbursement form.
- Remind employees to document the purpose of each business trip.
- Ask your accountant which vehicle-expense method makes sense for your situation.
Small steps now can make year-end reporting much easier.
Let’s make sure your mileage records are working for you
The midyear mileage increase is another reminder that tax rules can change while you’re busy running your business.
You shouldn’t have to spend hours trying to determine which rate applies, whether a trip qualifies, or how to organize the information.
At A Mazzo Accounting Services, we work with individuals and small to midsized businesses throughout Kenhorst, Reading, Wyomissing, West Reading, Sinking Spring, and the surrounding Greater Reading area. Our services include business accounting, payroll, tax planning and preparation, and start-up consulting.
Our goal is simple: help you understand what needs to be done, keep your records on track, and give you greater peace of mind.
Have questions about your mileage records or business vehicle expenses? Contact A Mazzo Accounting Services before the end of the year so we can review your situation while the details are still fresh.
Frequently Asked Questions
What is the IRS business mileage rate after July 1, 2026?
The standard mileage rate for eligible business driving from July 1 through December 31, 2026, is 76 cents per mile. The rate for January 1 through June 30 remains 72.5 cents per mile. (IRS)
Can I use 76 cents for all of my 2026 business mileage?
No. The 76-cent rate applies only to eligible business transportation expenses incurred on or after July 1, 2026. Earlier mileage remains subject to the first-half rate. (IRS)
Is mileage from my home to my regular workplace deductible?
Regular commuting between your home and usual workplace is generally personal mileage. Different rules may apply when you have a qualifying home office, temporary work location, or multiple business locations.
What happens when I forget to track some of my mileage?
Gather your calendars, receipts, invoices, appointment records, and other supporting information. Don’t invent mileage. Speak with your accountant about what can be reasonably documented and how to create a stronger system moving forward.
Does my employer have to reimburse me at 76 cents per mile?
Not necessarily. The IRS rate is optional, and an employer may use a different reimbursement rate under its company policy.
Can A Mazzo Accounting help me organize mileage and vehicle expenses?
Yes. We can review how you’re recording mileage, discuss your business vehicle use, and help you understand how those records fit into your tax planning.