07/23/2026
IRS Raises 2026 Standard Mileage Rate for Second Half of Year
The IRS has increased the optional standard mileage rate for business use of vehicles for the remainder of 2026, giving taxpayers a larger deduction for qualifying business travel. Effective July 1, 2026, the business mileage rate increased to 76 cents per mile, up from the 72.5 cents per mile rate that applied during the first half of the year. The IRS said the midyear adjustment was made in response to higher fuel costs.
The revised rate applies to taxpayers who use the standard mileage method to calculate deductible vehicle expenses, including many sole proprietors and self-employed individuals. Tax professionals should remind clients who use this method to maintain accurate mileage records and separate mileage driven before and after the July 1 effective date to apply the correct rates.
The IRS also increased the optional mileage rate for medical and qualified moving expenses to 23.5 cents per mile for eligible travel beginning July 1, 2026. The change marks the first midyear adjustment to the standard mileage rates since 2022 and highlights the importance of reviewing vehicle expense calculations for clients who rely on mileage deductions.
Source: Journal of Accountancy.
Find standard mileage rates to calculate the deduction for using your car for business, charitable, medical or moving purposes.
