The IRS increased the standard business mileage rate from 72.5 cents per mile to 76 cents per mile, effective July 1, 2026. The medical and moving mileage rate also increased from 20.5 cents per mile to 23.5 cents per mile, while the charitable mileage rate remains 14 cents per mile.

According to the IRS, the increases reflect recent changes in fuel prices and vehicle operating costs.

What This Means for Taxpayers

The higher rates may result in larger tax deductions and higher reimbursements for miles driven after July 1, 2026.

For business mileage:

• January 1 – June 30, 2026: 72.5 cents per mile
• July 1 – December 31, 2026: 76 cents per mile

Self-employed individuals who use the standard mileage method may be able to claim larger deductions for eligible business travel during the second half of the year. Employees who are reimbursed for business mileage may also receive higher reimbursements, depending on their employer’s policy.

Because the change took effect midyear, taxpayers must apply the correct mileage rate based on when the miles were driven. The charitable mileage rate did not change because it is set by federal law.

Don’t Overlook Recordkeeping

The higher mileage rates do not change the need for good documentation. Taxpayers should continue maintaining detailed mileage logs that generally include the date, destination, purpose, and number of miles driven for each trip.

Businesses that reimburse employees for the business use of personal vehicles may also want to review their mileage reimbursement policies and systems to ensure the updated rate was applied beginning July 1, 2026.

Reviewing mileage records now, rather than waiting until year-end, can help taxpayers claim the appropriate deduction and avoid errors when filing their returns.