Mileage & Per Diem 2026

Last updated April 16, 2026

The IRS mileage and per diem rates help businesses and self-employed taxpayers calculate travel and vehicle-related deductions. These rates simplify expense tracking and are commonly used instead of detailed actual cost calculations.

Understanding how mileage rates and per diem allowances work can help you stay compliant with IRS rules while maximizing your deductions.

Mileage Rates for 2026

For 2026, the IRS standard mileage rates are:

• Business use: 72.5 cents per mile
• Medical and qualifying moving use: 20.5 cents per mile
• Charitable service: 14 cents per mile

The business mileage rate covers typical vehicle expenses such as fuel, maintenance, insurance, and depreciation. It provides a simplified way to calculate deductions without tracking every individual expense.

The depreciation portion built into the business mileage rate for 2026 is 35 cents per mile, which affects how a vehicle’s tax basis is reduced over time.

For full details and vehicle limits, see IRS 2026 Mileage Rates and Vehicle Limits.

Per Diem Rates

Per diem rates are used to calculate daily travel expenses such as lodging, meals, and incidental costs. Instead of tracking actual expenses, businesses and self-employed individuals can use standard per diem allowances.

Per diem rates are set by federal guidelines and may be updated periodically. Taxpayers should refer to current IRS and GSA guidance when applying per diem rates to business travel.

Mileage vs. Per Diem

Mileage and per diem serve different purposes in tax reporting:

• Mileage rate is used for vehicle-related expenses
• Per diem is used for travel-related expenses such as meals and lodging

Many businesses use both methods together—mileage for transportation and per diem for daily travel costs.

To compare vehicle deduction methods, see Standard Mileage vs. Actual Expenses 2026.

Important Rules

• Maintain accurate records of business travel, including dates, locations, and purpose
• Keep mileage logs when using the standard mileage method
• Do not combine mileage and actual vehicle expenses for the same vehicle in the same year
• Ensure per diem usage aligns with IRS guidelines

For broader deduction rules, see IRS Business Expense Rules 2026.

Why This Matters

Using standard mileage and per diem rates can simplify tax reporting and reduce administrative work. These methods are widely used by small businesses, freelancers, and self-employed professionals who need a practical way to track deductible expenses.

Bottom Line

The IRS mileage and per diem system provides a structured and simplified way to handle travel and vehicle deductions. For 2026, the updated mileage rate reflects current operating costs, while per diem remains a flexible method for managing daily travel expenses.

Related Articles

• IRS 2026 Mileage Rates and Vehicle Limits
• Standard Mileage vs. Actual Expenses 2026
• Tax Deductions for Self-Employed Drivers 2026