IRS Issues Mid-Year Standard Mileage Rate Increase

Business Tax
Updated IRS Standard Mileage Rates Issued for 2025

IRS announces mid-year increase for standard mileage rates.

On July 13, the IRS published Internal Revenue Bulletin 2026-29, which includes Announcement 2026-11 revising the 2026 optional standard mileage rates for business, medical and qualifying moving purposes. The change reflects recent increases in fuel prices. The charitable mileage rate remains unchanged.

Refer to the table below for a comparison of the new allowable mileage rates.

January 1, 2026-June 30, 2026 July 1, 2026-December 31, 2026
Business Use 72.5 cents per mile 76 cents per mile
Charity Use 14 cents per mile 14 cents per mile
Medical/Moving
(limited situations)
20.5 cents per mile 23.5 cents per mile

The revised rates apply to eligible transportation expenses paid or incurred on or after July 1, 2026. Taxpayers should separate mileage incurred from January 1 through June 30 from mileage incurred from July 1 through December 31 when calculating deductions or reimbursements. Reach out to your tax advisor if you have questions about this change.

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