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IRS Increases 2026 Mileage Rates Due to Rising Fuel Prices

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Last Updated: July 22, 2026

1 minute engagement

Payroll professional holds a mileage log and points to a car with an up arrow in an office — IRS 2026 mileage rate increase.

The IRS has increased 2026 mileage rates for the second half of the year due to rising fuel prices. Here are the changes that took effect on July 1.

The business standard mileage rate is 76 cents per mile, up from 72.5 cents per mile in effect during the first half of the year.

As to miles driven for medical or moving purposes, the standard rate has risen to 23.5 cents per mile, up from 20.5 cents per mile. The standard rate for moving purposes remains limited to qualified active-duty members of the Armed Forces and certain members of the intelligence community.

These mid-year rate increases are not retroactive. Employers should continue using the previous mileage rates for expenses paid or incurred before July 1.

More info: Announcement 2026-11, IRB 2026-29.

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