IRS Raises Standard Mileage Rates Midyear for 2026
by Amy Quigg
The Internal Revenue Service has announced a midyear increase to the optional standard mileage rates for 2026, effective July 1, 2026. Because the change took effect halfway through the year, businesses and taxpayers will need to apply two different mileage rates when calculating eligible mileage for 2026.
Updated IRS Mileage Rates Effective July 1, 2026
For mileage incurred July 1 through December 31, 2026, the optional standard mileage rates are:
Business use: 76 cents per mile (up from 72.5 cents)
Medical travel: 23.5 cents per mile (up from 20.5 cents)
Moving (eligible active-duty military members and certain intelligence community personnel): 23.5 cents per mile (up from 20.5 cents)
Charitable service: 14 cents per mile (unchanged)
Mileage incurred between January 1 and June 30, 2026, remains subject to the previously announced rates.
Employers and Taxpayers Should Review Mileage Reimbursement Practices
This change may affect:
Employers that reimburse employees for business travel using the IRS standard mileage rate.
Self-employed individuals who claim business mileage deductions.
Taxpayers claiming eligible medical mileage.
Payroll, accounting, and human resources departments responsible for administering mileage reimbursement programs.
Action Items for Businesses and Individuals
Organizations that rely on the IRS standard mileage rate should review their reimbursement policies and confirm that payroll and expense reporting systems reflect the updated rates for travel occurring on or after July 1.
Likewise, taxpayers should ensure their mileage logs clearly distinguish between travel completed before and after July 1, as both rates will apply when preparing 2026 tax returns.
Why This Midyear Update Is Significant
The IRS typically announces standard mileage rates once each year. Midyear adjustments are uncommon and generally occur only when operating costs change significantly. As a result, businesses and taxpayers should be aware that two different mileage rates apply during the 2026 tax year.
How We Can Help
Hamburg Rubin attorneys are available to assist employers, business owners, and individuals with questions regarding the updated IRS mileage rates, reimbursement policies, record keeping requirements, and related tax considerations. For more information, please contact an HRMM&L attorney at 215.661.0400.