The Internal Revenue Service announced an increase in the standard mileage rates for business driving, effective July 1, 2026. Generally, the IRS announces a mileage rate that is used the entire year. However, for 2026, the IRS made a special mid-year adjustment for the final months of 2026 in response to a sharp rise in fuel prices.
New rates effective July 1, 2026:
Business – 76¢ per mile (up from 72.5¢ per mile for the first half of 2026)
Medical and Moving – 23.5¢ per mile (up from 20.5¢ per mile for the first half of 2026)
Charitable – 14¢ per mile (unchanged, as this rate is set by statute)
If you use the standard mileage rate to calculate your business car expenses, use the new 76¢ rate for miles driven July 1 through December 31, 2026. The 72.5¢ rate still applies to business miles driven from January 1 through June 30, 2026.
If you are an employer who reimburses mileage using a standard mileage rate, reimbursement for mileage driven in 2026 after June 30, 2026 will not be taxed to the employee as long as the reimbursement rate does not exceed 76¢ per mile.
Because two different rates apply during 2026, accurate tracking — noting the date of travel — will be especially important this year for substantiating deductions or tax-free reimbursements.