The 2026 IRS Mileage Rate Went Up Mid-Year: What Gig Drivers Need to Know

For most gig drivers, the standard mileage deduction is the single biggest tax write-off. In 2026 the IRS changed the rate partway through the year, so you'll use two rates on one tax return.

The two 2026 rates

• January 1 to June 30, 2026: 72.5¢ per business mile
• July 1 to December 31, 2026: 76¢ per business mile

Keep your mileage log split by date so you can apply the right rate to each half of the year.

What counts as a business mile

• Driving to a pickup after accepting a trip or order
• Driving with a passenger or delivery
• In many cases, miles driven with the app on while waiting for requests. Ask a tax professional how this applies to you.

Your commute from home to the first area where you start working is a gray area. Keep good records and ask a professional.

What the rate covers

The standard rate replaces deducting gas, repairs, insurance and depreciation separately. You can't take both. Parking fees and tolls for business trips are still deductible on top.

Keep a log

The IRS expects a record of the date, miles and purpose. An automatic mileage-tracking app is the easiest way. App reports from Uber or DoorDash often show only miles with a passenger or order, which undercounts your real business miles.

An example with both rates

Say you drove 6,000 business miles from January through June and 7,000 from July through December.

• 6,000 × $0.725 = $4,350
• 7,000 × $0.76 = $5,320
• Total mileage deduction: $9,670

Standard rate or actual expenses?

Instead of the standard rate, you can deduct the business share of your actual costs: gas, insurance, repairs, registration and depreciation. That can work better for expensive, gas-hungry vehicles. It takes more recordkeeping, and there are rules about switching methods, so talk with a tax professional first.

Recordkeeping that holds up

• Start your tracker the moment you go online, and stop it when you go offline.
• Export a monthly report and store it with your app earnings statements.
• Keep receipts for tolls and parking.
• Note your odometer reading on January 1 and December 31.

Frequently asked questions

Does the rate change affect my quarterly estimated payments? A higher rate lowers your taxable profit, so your third- and fourth-quarter estimates may be a little lower.

What if I drive for multiple apps? Track total business miles. You don't need to split miles by app.

Bottom line

Track every business mile, split your log at July 1, and apply 72.5¢ and 76¢ to the right halves of the year.