On July 1, 2026, the IRS raised the business standard mileage rate to 76 cents per mile, up from 72.5 cents for the first half of the year. It's a rare mid-year change — the last one was in 2022 — and it means 2026 has two mileage rates. If you drive for a gig platform and use the standard mileage method, you'll need to split your miles: 72.5 cents for every business mile you drove January through June, and 76 cents for every mile from July 1 onward. Getting that split right is the difference between a correct deduction and a number you'll have to fix later.
What changed, and when
The IRS sets a standard mileage rate each year so drivers can deduct a flat per-mile amount instead of itemizing gas, maintenance, insurance, and depreciation. For 2026 it started at 72.5 cents. Then, on July 13, 2026, the IRS announced a mid-year increase — driven by rising fuel prices — bumping the business rate to 76 cents per mile effective July 1, 2026.
So the 2026 business standard mileage rate looks like this:
- January 1 – June 30, 2026: 72.5 cents per mile
- July 1 – December 31, 2026: 76 cents per mile
Mid-year adjustments are unusual. The IRS last did one in 2022, also because of a fuel-price spike. (Source for your records: IRS Announcement 2026-11, Internal Revenue Bulletin 2026-29, July 13, 2026.)
What it means for gig drivers
If you use the standard mileage method — the most common choice for rideshare and delivery drivers who use a car — the second half of the year is worth slightly more per mile. Every business mile you drive from July 1 on is deductible at 76 cents instead of 72.5. Over thousands of miles, that adds up.
But there's a catch that trips people up in any mid-year-change year: you can't apply one rate to the whole year. Your deduction is the sum of two calculations — first-half miles at 72.5 cents, second-half miles at 76 cents. If you (or your tracking app) multiply all your 2026 miles by a single rate, the number will be wrong.
That's the real takeaway: the miles you log now need a date, not just a total. A ride log that knows when each mile happened is what lets you apply the right rate to the right miles at tax time.
The 2026 two-rate trap
Say you drove 6,000 business miles in the first half of the year and 6,000 in the second half. At a single 76-cent rate you'd overstate your deduction; at a single 72.5-cent rate you'd understate it. The correct figure applies each rate to its own period. The exact result depends on your real mileage in each half — which is exactly why tracking by date, all year, matters more than a back-of-the-envelope guess in April.
None of this is tax advice, and your situation may differ — a licensed tax professional is the right person for the final number. But the record-keeping habit is the same either way: log every business mile with its date, and keep the two periods separate.
Does this apply to e-bike and bike couriers?
No — and this is a common point of confusion. The standard mileage rate, at any figure, only applies to a car, van, pickup, or panel truck. It does not apply to e-bikes, bicycles, motorcycles, or scooters. So the jump to 76 cents doesn't change anything for e-bike couriers: you still can't use the standard mileage rate at all, and you still deduct your actual expenses instead — electricity, battery wear, and mechanical wear, which for a typical e-bike run around 6 cents a mile. (If that's you, here's the fuller breakdown: e-bike delivery costs and taxes.)
What to do now
- Log every business mile with its date. For 2026 specifically, that date decides whether the mile is worth 72.5 or 76 cents.
- Keep the two periods separate — Jan–Jun and Jul–Dec — so the split is clean at tax time.
- Set aside an estimated slice for taxes as you earn. Nobody withholds for a gig worker; treat it as a planning estimate and confirm the right amount with a tax professional.
- Decide standard-mileage vs. actual expenses deliberately. For most car drivers the standard rate wins; for e-bikes it isn't an option. A side-by-side comparison is worth doing once a year.
That's exactly why dated records matter, and it's what GigMiles is built around: log each shift with its date, so your mileage is ready to apply the right rate to the right miles when you file. You can also estimate your real net per shift — car or e-bike — with the free take-home calculator.
This article is general information and a planning aid — not tax advice, and not a filed return. Rates cited are the 2026 IRS business standard mileage rates (72.5¢ for Jan 1–Jun 30, 76¢ for Jul 1–Dec 31). Consult a licensed tax professional for your specific situation.