IRS Announces New Standard Mileage Rates Adjustment for 2026

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The IRS has issued a rare mid‑year adjustment to the 2026 standard mileage rates, reflecting updated data on vehicle operating costs. These revised rates take effect July 1, 2026, and apply through December 31, 2026.

This change affects taxpayers who deduct mileage for business, medical, or military moving purposes.

Updated Mileage Rates for July 1 – December 31, 2026

Beginning July 1, the IRS increased several mileage categories:

Business Mileage: 76 cents per mile
Medical Mileage: 23.5 cents per mile
Moving Mileage (Active‑Duty Military): 23.5 cents per mile
Charitable Mileage: 14 cents per mile (unchanged; set by federal statute)

Mileage Rates for January 1 – June 30, 2026

For the first half of the year, the following rates applied:

Business Mileage: 72.5 cents per mile
Medical Mileage: 20.5 cents per mile
Moving Mileage (Active‑Duty Military): 20.5 cents per mile
Charitable Mileage: 14 cents per mile

Why the IRS Made a Mid‑Year Adjustment

The IRS typically updates mileage rates annually based on a comprehensive study of fixed and variable vehicle operating costs, including:

Fuel prices
Maintenance and repair costs
Insurance
Depreciation

When these costs shift significantly during the year, the IRS may issue a mid‑year correction — which is exactly what happened for 2026.

What Taxpayers and Employers Need to Know

For Self‑Employed Individuals & Small Businesses

You can deduct more per mile for business travel starting July 1. Make sure your recordkeeping clearly separates pre‑July and post‑July mileage.

For Employers

If you reimburse employees using the IRS standard mileage rate, update your payroll or expense‑tracking systems to reflect the new rate beginning July 1.