Short answer
AAA's 2026 study puts a new vehicle at about 86 cents a mile all in, the IRS business rate is 76 cents from 1 July 2026, and fuel alone is about 12 cents at 28.5 MPG and $3.55 gas.
1. Three ways to price a mile
| Method | Cents per mile | What it includes |
|---|---|---|
| Fuel only | 12.5 | Gasoline at $3.55 and 28.5 MPG |
| Fuel + wear | 21.7 | Fuel plus $0.092 for maintenance and tires |
| IRS business rate | 76.0 | Fuel, wear, insurance and depreciation (from 1 July 2026) |
| AAA new vehicle average | about 86 | Depreciation, insurance, finance, fees, fuel, maintenance and tires |
2. AAA's 2026 figures
AAA's 2026 Your Driving Costs study, reported in October 2026, puts the average new vehicle at $12,863 a year for 15,000 miles. Depreciation is the biggest piece at $4,422, followed by insurance at $2,098 and finance charges at $1,184. Fuel is 17.3 cents a mile and maintenance, repairs and tires 11.7 cents. AAA changed its method this year, so the total is not directly comparable with 2025.
3. Which one to use
- Fuel only shows the cash leaving your wallet on each trip.
- Fuel plus wear is a good estimate of the cost of extra miles on a car you already own.
- The IRS or AAA figure fits when a commute pushes you to own or replace a car sooner.
The IRS rate is a business rate. Commuting is generally not deductible, so use it as a cost benchmark, not a tax deduction.
4. Frequently asked questions
What is the AAA cost per mile?expand_more
About 86 cents for the average new vehicle in 2026, from $12,863 a year at 15,000 miles.
What is the IRS mileage rate for 2026?expand_more
72.5 cents from January, and 76 cents from 1 July 2026, for business use.
Which rate should I use for my commute?expand_more
Fuel plus wear for the cash cost of extra miles, or an all-in rate if the commute adds to your car ownership cost.
Can I deduct commuting at the IRS rate?expand_more
Generally no. Home to regular workplace travel is treated as personal.