IRS raises mileage rate midyear. Here's who benefits in 2026
USA Today • • business
Key Points:
- The IRS has raised the standard mileage rate for business use to 76 cents per mile effective July 1, 2026, an unusual midyear increase prompted by rising gas prices linked to the Iran war.
- Medical and moving mileage rates also increased by 3 cents to 23.5 cents per mile for the second half of 2026, applying to certain active-duty military and intelligence community members as well.
- Midyear mileage rate adjustments are rare, with the last similar change occurring in 2022 due to volatile gas prices and before that in 2011.
- Companies typically follow IRS mileage rates for employee reimbursements, which prevents employees from claiming additional deductions; self-employed individuals can still claim mileage using the appropriate rate for each half of the year.
- The charitable mileage rate remains unchanged at 14 cents per mile for 2026, and the IRS rates apply equally to electric, hybrid, gasoline, and diesel vehicles.
