07/20/2026
IRS Increases Business Mileage Rate to 76 cents per mile.
The IRS has raised the optional standard mileage rates for the remainder of this year. The reason: recent increases in the price of fuel, as gasoline once again inches close to $4 a gallon amid the renewed fighting between the U.S. and Iran.
The midyear changes to the 2026 standard mileage rates went into effect on July 1.
Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes.
The revised standard mileage rates are:
Business: 76 cents per mile (up from 72.5 cents at the start of this year); and
Medical and moving: 23.5 cents per mile (up from 20.5 cents at the start of 2026).
The mileage rate that applies to the deduction for charitable contributions is fixed under Section 170(i) of the Internal Revenue Code at 14 cents per mile.
The 76-cents-per-mile standard business mileage rate is believed to be an all-time high.
This is the first time since June 2022 that the IRS increased the standard mileage rates during the middle of the year.
