The IRS set the optional standard mileage rate for business use of a car, van, pickup, or panel truck at 72.5 cents per mile for 2026, an increase from 70 cents in 2025. The rate applies to gasoline, diesel, hybrid, and fully electric vehicles.
The standard mileage method is optional. Depending on the vehicle and circumstances, a taxpayer may instead use eligible actual expenses. There are method-selection rules for owned and leased vehicles, so businesses and owners should discuss the appropriate treatment with their tax advisor.
Good mileage records matter more than the rate
A reimbursement or deduction is only as reliable as the supporting log. For each business trip, retain the date, starting point, destination, business purpose, and miles driven. The log should distinguish business travel from commuting and personal use.
Whether the business uses an app, vehicle log, or expense platform, establish one method and require records to be submitted on a consistent schedule.
Create a clear reimbursement workflow
- Publish the rate and effective date in the reimbursement policy.
- Require supervisory approval and a stated business purpose.
- Separate mileage from parking, tolls, and other travel expenses.
- Set a monthly submission deadline.
- Retain reports with the related payment record.
Keep QuickBooks reporting clean
Map mileage reimbursements to a dedicated travel or vehicle-expense account. If multiple locations, departments, projects, or jobs use vehicles, apply the same tracking structure used for other operating costs. Reconcile reimbursement reports to the payments recorded in QuickBooks and review unusual or duplicate submissions.
Official source
IRS announcement of the 2026 optional standard mileage rates
This article provides general information and is not legal or tax advice. Requirements depend on specific facts and may change.