IRS Increases Standard Mileage Rates Effective July 1, 2026
July 16, 2026
Share:The IRS has announced an increase to the optional standard mileage rates for the second half of 2026, reflecting higher fuel prices. The updated rates were released in IRS Announcement 2026-11 and apply to travel beginning July 1, 2026.
The IRS standard mileage rate is used to calculate deductible vehicle expenses for business use and certain medical travel, as well as to determine mileage reimbursement rates for employees and businesses.
2026 IRS Standard Mileage Rates
| Purpose | 1/1/26 – 6/30/26 | 7/1/26 – 12/31/6 |
| Business | 72.5¢ per mile | 76¢ per mile |
| Medical | 20.5¢ per mile | 23.5¢ per mile |
| Charitable | 14¢ per mile | 14¢ per mile (no change) |
Mileage Log Requirements
Whether you claim a business mileage deduction or receive mileage reimbursement from your employer, maintaining accurate records is essential.
Your mileage log should include:
- Date of travel
- Destination
- Business purpose of the trip
- Number of miles driven
Keeping contemporaneous records helps support your deduction or reimbursement if requested by the IRS.
How the 2026 Mileage Rate Increase May Affect You
The updated IRS mileage rates may impact:
- Business owners deducting vehicle expenses
- Self-employed individuals
- Employees receiving mileage reimbursement under an accountable plan
- Taxpayers claiming eligible medical travel expenses
If you use the IRS standard mileage rate to calculate vehicle expenses, be sure to apply the correct rate based on the date the travel occurred.
Questions About the New IRS Mileage Rates?
If you have questions about the 2026 IRS mileage rates, mileage reimbursement, or how these changes affect your business or tax situation, contact your Wilkins Miller advisor. Our tax professionals can help you determine which mileage method is appropriate and ensure your deductions are properly documented.