The optional standard mileage rate is a cents-per-mile deduction. It is not a reimbursement your employer must pay. It is not gas money. For 2026 the IRS published two business rates in the same calendar year.
- Notice 2026-10: 72.5 cents per mile for business use, effective January 1, 2026
- Announcement 2026-11: 76 cents per business mile for expenses paid or incurred on or after July 1, 2026
100 business miles on March 15 deduct $72.50. The same 100 miles on July 1 deduct $76.00.
Run the standard mileage calculator →
The calculator uses the travel date (when the expense is paid or incurred) to pick H1 vs H2. A June 30 business mile stays at 72.5 cents. A July 1 business mile uses 76 cents. Charitable miles stay 14 cents all year under IRC § 170(i).
2026 rates the calculator ships
| Purpose | Jan 1 to Jun 30 (Notice 2026-10) | On/after Jul 1 (Announcement 2026-11) |
|---|---|---|
| Business | 72.5¢ | 76¢ |
| Medical (§ 213) or moving (§ 217(g)) | 20.5¢ | 23.5¢ |
| Charitable (§ 170(i)) | 14¢ | 14¢ |
deduction = miles × (cents per mile for that date and purpose) ÷ 100
Trips you can re-run
| Miles | Purpose | Date | Deduction |
|---|---|---|---|
| 100 | Business | 2026-03-15 | $72.50 |
| 100 | Business | 2026-07-01 | $76.00 |
| 100 | Charitable | any 2026 day | $14.00 |
| 10 | Medical | 2026-06-30 | $2.05 |
| 10 | Medical | 2026-07-02 | $2.35 |
| 33.3 | Business | 2026-08-25 | $25.31 |
Medical and moving use the same cents in each half-year. “Moving” here is the narrow § 217(g) case (active-duty military, in the notice). Ordinary job-to-job moving is often not deductible. Do not treat 20.5¢ / 23.5¢ as a civilian relocation bonus.
How this meets a 1099 return
Mileage is usually a Schedule C expense. It lowers net earnings, which then flow into SECA and Form 1040. It does not change the 12.4% / 2.9% rates. A $76 July deduction on a sole-prop year is $76 less profit, not $76 of withheld tax.
After you have net profit, stack self-employment take-home. Worked $50,000 net, single: $39,539.11 after SECA + income tax in that model. Explainer: self-employment take-home vs W-2.
W-2 employees who are not reimbursed under an accountable plan sometimes deduct unreimbursed business expenses only in limited cases. Most employees cannot take the old “employee business expense” mileage write-off. If your employer pays a mileage allowance, that is payroll / accountable-plan territory, not this optional rate by itself.
You may use actual costs (gas, depreciation, insurance) instead of cents-per-mile, with depreciation and basis rules this calculator does not model. Mixing methods on the same car across years is restricted. The IRS notices describe the optional rate. They are not a bookkeeping system.
What this page is not
- Not FAVR, fleet valuation, or an employer mileage policy.
- Not a 2025 rate table. Last year’s cents do not apply.
- Not state mileage reimbursement (some states set their own for public employees).
- Not overtime or paycheck math. Driving to a second shift does not create FLSA overtime. See FLSA overtime.
The notices key off when the expense is paid or incurred. The calculator is one date, one trip. Split the miles by day if you need both rates, or ask a tax professional for overnight trips that straddle July 1.
No. The optional rate is a federal tax figure. An employer can reimburse more, less, or nothing. Amounts above the IRS rate can be taxable wages. That is a payroll question, not this deduction tool.
No. IRC § 170(i) is still 14 cents in both halves of 2026. 100 charitable miles = $14.00 on January 1 or December 31.
Yes. Mileage lowers net profit. SECA still applies to the remaining net (92.35% × 15.3% in the usual case). It does not zero SE tax by itself.
Notice 2026-10 (IRB 2026-4) · Announcement 2026-11 (IRB 2026-29) · Topic 510 (business use of a car)