IRS Updates Standard Mileage Rates Effective July 1

The IRS has announced revised standard mileage rates for the second half of 2026 in response to recent increases in fuel prices. Under Announcement 2026-11, the business mileage rate increases to 76 cents per mile from 72.5 cents. The rate for medical and moving expenses increases to 23.5 cents per mile, while the rate for charitable miles remains unchanged at 14 cents per mile. The updated rates apply to deductible transportation expenses paid or incurred on or after July 1, 2026. The revised rates also apply to mileage allowances paid to employees on or after July 1, 2026, for transportation expenses incurred on or after that date.

Note for expenses incurred before July 1, 2026, the mileage rates established in IRS Notice 2026-10 remain in effect.