The standard business mileage rate jumps to 76¢ per mile starting July 1, 2026. If you drive for a living, this is money in your pocket — but only if you’re tracking every mile.
In a move it almost never makes, the IRS changed the standard mileage deduction rate in the middle of the tax year. In Announcement 2026-11, published in Internal Revenue Bulletin 2026-29, the agency raised the optional standard mileage rate for business use to 76 cents per mile, effective July 1, 2026 — up 3.5 cents from the 72.5¢ rate that had been in place since January.
The reason: recent increases in the price of fuel.
For rideshare drivers, delivery couriers, and anyone else who puts serious miles on their car to earn a living, this is one of the most meaningful tax changes of the year. Here’s what actually changed, why it matters, and how to make sure you don’t leave money on the table.
What Changed — and When
The mileage deduction is how self-employed drivers write off the cost of operating their vehicle. Instead of tracking gas, oil, repairs, insurance, and depreciation separately, you multiply your business miles by a single IRS rate.
For 2026, that rate now comes in two parts:
The medical and moving rate also rose, to 23.5¢ per mile. The charitable rate stays fixed at 14¢ per mile (set by statute under §170(i) of the Internal Revenue Code).
Mid-year rate changes are rare. When it happens, it’s a signal that the cost of driving has jumped enough that the standard rate no longer reflects reality. For gig workers, that’s more than just a headline — it means a bigger deduction on the back half of the year for every business mile tracked.
What It Means for Gig Drivers
Say you drive 20,000 business miles in the second half of 2026. At the new 76¢ rate, that’s $15,200 in deductions — versus $14,500 at the old rate. That extra 3.5¢ per mile adds up to $700 more in write-offs on the same driving.
Multiply that across a full year of rideshare or delivery work and the mileage deduction is very likely the single largest tax break you’ll claim. But there’s a catch that trips up thousands of drivers every filing season:
You can only deduct the miles you can prove.
The IRS requires a contemporaneous mileage log — the date, purpose, and distance of every business trip. Reconstruct it from memory in April and you risk losing the deduction entirely (or the whole thing in an audit). With the rate now split across two periods, accurate records matter more than ever: you need to know exactly how many miles you drove before July 1 versus after.
One important note: this higher deduction is for self-employed drivers who report business income on Schedule C — which is exactly how most gig workers file. W-2 employees generally can’t deduct unreimbursed mileage. If you’re driving for Uber, Lyft, DoorDash, Instacart, or any 1099 platform, this is your deduction to claim.
Don’t Just Track Your Miles — Put Them to Work
Knowing the rate went up is the easy part. The hard part is capturing every mile and every dollar of expense automatically, all year long, so that when tax season arrives you’re not scrambling.
That’s exactly what Solo does. Solo's mileage tracker automatically records your business miles across every gig platform you drive for. Then, Solo auto-categorizes your miles as either working miles or personal miles based on your completed jobs, allowing you to maintain an IRS-compliant record of every mile split correctly across rate periods, so that this mid-year change is handled for you automatically. This will pay off in a big way during tax time in April 2027.
And if you’re driving for multiple platforms, Solo’s automatic expense tracking feature pulls in transactions automatically through Plaid, so nothing falls through the cracks. No spreadsheets. No shoeboxes of receipts. Just you maximizing every deduction you possibly can without ever having to think about it.
File Your Taxes Free with Solo
Here’s the part that makes the mileage rate change genuinely good news instead of one more thing to worry about: Solo members file their taxes for free if you're subscribed to an annual subscription plan.
With Solo’s free tax filing feature, you file your federal and state returns directly from Solo — powered by April Tax — using the income and expense data you’ve already tracked all year. No manual entry or expensive tax software required.
Your forms are prepared automatically from what Solo already knows about your driving, so your mileage deduction at the new 76¢ rate is calculated and applied for you. Free tax filing is included as part of your annual Solo subscription — one flat cost, taxes handled.
For a deeper look at everything gig workers need to know about filing, check out our Gig Worker Tax Guide.
The IRS just made every mile you drive worth more. Make sure you’re capturing all of them.
Get started with Solo and file your 2026 taxes free →
Frequently Asked Questions
What is the IRS standard mileage rate for 2026?
The IRS standard business mileage rate for 2026 is split into two periods: 72.5 cents per mile from January 1 through June 30, and 76 cents per mile from July 1 through December 31. The increase was announced in IRS Announcement 2026-11, which modifies Notice 2026-10.
When did the new 76-cent mileage rate take effect?
The new rate of 76 cents per mile took effect on July 1, 2026. It applies to business miles driven on or after that date. Miles driven before July 1, 2026 are still deducted at the previous 72.5-cent rate.
Do I use two different mileage rates when I file my 2026 taxes?
Yes. You deduct miles driven from January through June at 72.5¢ per mile and miles driven from July through December at 76¢ per mile. This is why accurate mileage records with dates matter — you need to know which miles fall in which period. Solo’s Mileage Tracker handles the split automatically.
Can W-2 employees deduct mileage on their taxes?
Generally, no. The standard mileage deduction is for self-employed individuals who report business income on Schedule C. Most gig workers — anyone driving for Uber, Lyft, DoorDash, Instacart, or other 1099 platforms — file as self-employed and qualify for this deduction. W-2 employees cannot deduct unreimbursed mileage on their federal return.
What records does the IRS require for the mileage deduction?
The IRS requires a contemporaneous log that includes the date of each trip, the business purpose, and the miles driven. “Contemporaneous” means recorded at or near the time of the trip — not reconstructed from memory months later. In an audit, the IRS can disallow the entire mileage deduction if you don’t have adequate records.
Why did the IRS raise the mileage rate mid-year?
The IRS cited recent increases in fuel prices. Mid-year adjustments are uncommon — the last one was in 2022, also due to a fuel price spike. When the cost of driving rises fast enough that the annual rate no longer reflects reality, the IRS has the authority to issue a correction.
Does Solo track mileage automatically?
Yes. Solo’s Mileage Tracker uses your phone’s GPS to record business miles in the background while you drive. It logs the date, distance, and route for every trip, creating the IRS-ready contemporaneous record you need to claim the deduction — including the correct rate split for 2026.
This article is for general informational purposes and is not tax advice. Rates are from IRS Announcement 2026-11 and Notice 2026-10, published in Internal Revenue Bulletin 2026-29. For guidance on your specific situation, consult a tax professional.
