IRS Raises the 2026 Mileage Rate to 76¢ Mid-Year: What Gig Workers Need to Do

In a rare mid-year move, the IRS has raised the standard business mileage rate from 72.5 cents to 76 cents per mile, effective July 1, 2026. The change, published in Announcement 2026-11 (amending Notice 2026-10), cites the rising cost of fuel. The last time the IRS changed the rate mid-year was 2022.

For delivery and rideshare drivers, this is good news — every mile you drive in the second half of 2026 is worth more at tax time. But a split-rate year also adds a wrinkle to your mileage log. Here's exactly what changed and what to do about it.

The 2026 Rates at a Glance

The rule is simple: each trip is valued at the rate in force on the date it was driven. A delivery run on June 28 deducts at $0.725/mile. The same run on July 2 deducts at $0.76/mile.

What the Increase Is Worth

The extra 3.5 cents per mile adds up faster than it sounds:

• 1,000 miles in the second half of the year: $35 more in deductions than at the old rate
• 10,000 second-half miles (a typical full-time driver): $350 more
• A driver logging 20,000 miles evenly across 2026 deducts $14,850 — versus $14,500 if the rate had stayed flat

What You Need to Do

1. Keep (or start) a dated mileage log

The IRS already requires contemporaneous records — date, miles, and business purpose for every trip. In a split-rate year, the date does double duty: it determines which rate each trip gets. A log without reliable dates can't support a split-rate deduction.

2. Subtotal your miles by rate period

Your Schedule C Line 9 deduction for 2026 is two subtotals, not one multiplication: (Jan–Jun miles × $0.725) + (Jul–Dec miles × $0.76). If you keep a manual spreadsheet, add a column or split your totals at June 30. When you (or your tax preparer) substantiate the deduction, show one line per rate.

3. Check that your mileage app actually updated

This is the trap. An app that applies one flat 2026 rate to your whole year is now undervaluing every mile you drive after July 1 by 3.5 cents — or worse, it may retroactively revalue your January miles at the new rate, which overstates your deduction and won't survive an audit. Spot-check: log a trip dated in June and one dated in July, and confirm they calculate at $0.725 and $0.76 respectively.

How GigLedger Handles It

GigLedger was built for exactly this situation. Rates are stored as date ranges, not single yearly numbers, so every trip is automatically valued at the rate in force on the day you drove it — trips from June stay at $0.725, trips from July calculate at $0.76, with no settings to change and no app update required. Your Schedule C preview and tax packet show one subtotal per rate, which is exactly how a split-rate year should be substantiated to the IRS.