The IRS almost never changes the standard mileage rate mid-year — the last time was 2022. It happened again in 2026, and freelancers who don't split their mileage log at the right date will either underclaim or miscalculate their deduction.
Two rates, one tax year
For miles driven January 1 through June 30, 2026, the standard business mileage rate is 72.5 cents per mile. For miles driven July 1 through December 31, 2026, the IRS raised it to 76 cents per mile — a 3.5-cent mid-year increase announced to keep pace with rising vehicle operating costs. Your 2026 return needs both rates applied to the correct half of the year, not one blended number.
Why the IRS rarely does this
The standard mileage rate is normally set once a year, in the preceding November or December, based on an annual study of vehicle operating costs. A mid-year adjustment — which last happened in 2022 — only occurs when the gap between the published rate and real driving costs widens enough during the year that waiting until January would meaningfully undercompensate taxpayers.
How to split your log correctly
If you track mileage in a spreadsheet or app, add a column or filter for the date and apply 72.5 cents to every business mile logged before July 1, and 76 cents to every mile logged on or after July 1. Most mileage-tracking apps have already pushed an update reflecting the new second-half rate — check that yours applied the change starting exactly on July 1, not retroactively to January.
A worked example
A freelancer who drove 4,000 business miles in the first half of 2026 and another 4,000 in the second half calculates the deduction in two pieces: 4,000 × $0.725 = $2,900 for January-June, plus 4,000 × $0.76 = $3,040 for July-December, for a total mileage deduction of $5,940 — not the $5,800 you'd get by applying a single rate to the full 8,000 miles.
The standard mileage rate already covers depreciation
Whichever rate applies, remember the standard mileage rate is a flat, all-inclusive figure covering gas, insurance, maintenance, and depreciation combined — you cannot also separately deduct actual gas receipts or repair bills on top of it. If your actual costs run higher than the standard rate covers, the actual expense method (tracking real costs and applying your business-use percentage) may be worth comparing instead.
Frequently asked questions
Does this affect the mileage rate for medical or charitable driving too?
The medical and moving mileage rate also increased mid-year, from 20.5 to 23.5 cents per mile starting July 1, 2026. The charitable mileage rate, set by statute rather than the IRS, stayed at 14 cents per mile all year.
Do I need special documentation for the mid-year change?
You need the same documentation as always — date, miles, and business purpose for each trip — but your log or app needs to reflect the correct rate based on which half of the year each trip fell in.
Which rate applies if I'm calculating my full-year deduction using our calculator?
Our 1040 Deduction Calculator applies the current second-half 2026 rate (76 cents) as a full-year estimate. For an exact split-year total, calculate each half separately using the two rates above.