07/28/2026
IRS Increases Mid-Year Optional Standard Mileage Rates for 2026
The IRS has issued Announcement 2026-11, increasing the optional standard mileage rates for the final six months of 2026 in response to rising fuel costs.
Effective 7/1/2026, the standard rate for the business use of a vehicle will be 76 cents per mile, an increase from the first half of the year. The new rate for deductible medical or moving expenses is 23.5 cents per mile. The charitable mileage rate, which is set by statute under IRC Sec. 170(i), is not affected by inflation and remains unchanged at 14 cents per mile. These revised rates apply to deductible transportation expenses paid or incurred on or after 7/1/26.
This mid-year adjustment modifies the rates previously established in Notice 2026-10. Employers must apply the new rates to mileage allowances for travel occurring on or after the effective date, creating a split-year framework for reimbursements under accountable plans.
Please be aware of this and keep this in mind if you reimburse yourself and/or employees for mileage.
Please let us know if you have any questions about this. Thank you.
