Starting July 1, 2026, the mileage rate for business use increases to 76 cents. The rates for medical and moving purposes will also increase.
On July 13, 2026, the Internal Revenue Service (IRS) released a revision to mileage rates that are retroactive from July 01, 2026, and are expected to remain until December 31, 2026.
The optional standard mileage rates are for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. The IRS indicated in Bulletin 2026-29 the modification results from recent increases in the price of fuel.
This means that effective July 1, 2026, the standard mileage rates for the use of a car, van, pickup, or panel truck are:
- 76 cents per mile driven for business use, an increase of 3.5 cents from the January 1, 2026, rate of 72.5 cents.
- 23.5 cents per mile driven for certain medical purposes, an increase of 3.0 cents from 20.5 cents per mile.
- 23.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces, and now certain members of the intelligence community, increased 3.0 cents
- 14 cents per mile driven in service of charitable organizations; this amount remains the same.
These rates apply to all vehicles, gasoline- and diesel-powered vehicles and including fully electric and hybrid automobiles.
Consult with your legal counsel, Employment Attorney, HR Advisor, or Tax Professional on updating your expense reimbursement policy regarding this update.
