Mileage reimbursement

IRS Standard Mileage Rate for 2026

The short version: for 2026, the IRS standard business mileage rate is 72.5 cents per mile. Here's what that means, how to use it, and how to keep a log that actually holds up.

2026 business rate

72.5¢ / mile

Set by the IRS for business use of a personal vehicle. Rates change — verify the current figure at irs.gov before relying on it for a filing.

How to calculate what you're owed

Multiply the miles you drove for business by the rate:

miles driven × rate per mile = amount owed
example: 42 miles × $0.725 = $30.45

That's it — no separate accounting for gas, wear, or insurance. The rate is built to cover all of it. The only real work is tracking the miles accurately as you go, rather than reconstructing them from memory at the end of the month.

What a mileage log needs

Whether you're claiming a deduction or invoicing a client, a defensible mileage log has four things for every trip:

The date of the trip
The business purpose (a client meeting, a job site, a court appearance)
The distance — from an odometer reading, a typed number, or a route you drive often
The rate applied, so the math is checkable later

The trap most people fall into isn't dishonesty — it's memory. A log rebuilt from a mental replay of the month is exactly the kind of record that falls apart under any scrutiny. Logging each trip when it happens, even roughly, beats a perfect-looking spreadsheet assembled three weeks later.

Common questions

Does the rate change every year?+

Yes, usually. The IRS reviews the standard mileage rate annually (and occasionally mid-year, as it did in 2022) based on the cost of operating a vehicle — fuel, maintenance, insurance, depreciation. Always confirm the current rate at irs.gov before relying on it for a tax filing.

Does the rate cover gas separately?+

No. The standard mileage rate is meant to cover all the costs of operating your vehicle — fuel included — so you don't also deduct or bill for gas receipts on top of it. If you're reimbursed per mile, gas is baked in.

Can my employer or client use a different rate?+

Yes. The IRS rate is a ceiling for what counts as a non-taxable reimbursement, not a legal minimum. Some clients pay less, and some — often out of convenience — just use the IRS rate as their default. Whatever rate you agree on, the important thing is logging it consistently.

What if I use my car for both business and personal trips?+

Only business miles are deductible or reimbursable at this rate — a client meeting or job site visit counts, a grocery run doesn't. This is exactly why a mileage log matters: it's your record of which miles were which.

Nowzit applies the right rate automatically — every trip.

Log miles by hand, odometer, or a saved route, and the current rate is applied for you. No spreadsheet, no memory required.

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This page is general information, not tax advice. For anything filing-specific, confirm the current rate and rules with irs.gov or a tax professional.