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. The charitable mileage rate remains 14 cents per mile.

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.

Taxpayers should continue keeping detailed mileage records and apply the correct rate based on when the miles were driven.