2026 Standard Mileage Rates – Updated for the Mid-Year Increase

The IRS set its usual inflation-adjusted standard mileage rates for 2026 back in December, but rising fuel prices prompted a rare mid-year revision. Effective July 1, 2026, the agency raised the business and medical/moving rates in Announcement 2026-11, which modifies the original Notice 2026-10. That means anyone deducting or reimbursing vehicle costs for business, medical, moving or charitable purposes needs to track two different rates for 2026, depending on when the mileage was actually driven. The moving-purpose rates still apply to certain active-duty members of the Armed Forces and now extend to certain members of the intelligence community as well.

Beginning on July 1, 2026, the standard mileage rates for the use of a car (van, pickup or panel truck) are:

• 76 cents per mile for business miles driven, up from 72.5 cents.
• 23.5 cents per mile driven for medical purposes, up from 20.5 cents.
• 23.5 cents per mile driven for moving purposes for certain members of the Armed Forces (and certain members of the intelligence community), up from 20.5 cents. 
• 14 cents per mile driven in service of charitable organizations. This is unchanged since this rate is fixed by statute.

Because this increase falls exactly at the midpoint of the year, mileage logs for 2026 need to be split into two periods: miles driven before July 1 are figured at the original rates and miles driven on or after July 1 are figured at the new, higher rates. The same split applies to employer reimbursements. The rate that applies depends on when the employee’s transportation expense was paid or incurred, not when the reimbursement check is issued.

The business standard mileage rate is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs determined by the same study. The rate for using an automobile while performing services for a charitable organization is statutorily set (it can only be changed by Congressional action) and has been 14 cents per mile for over 15 years.

Important Consideration

Taxpayers always have the option of calculating the actual costs of using their vehicle for business rather than using the standard mileage rates. Notice 2026-10 and Announcement 2026-11 contain additional information.

If you have questions about the standard mileage rate. The mid-year change or calculating the actual cost of using your vehicle for business, please contact Cray Kaiser.