IRS Raises Mileage Rates for Second Half of 2026

Thank you to our friends at GTM for providing this update.

Every year the IRS issues a standard mileage rate for the year. As a result of recent increases in the price of fuel, the IRS has made a midyear adjustment to the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, medical or moving expense purposes. Typically, the rates are adjusted annually, with a new rate taking effect Jan. 1 each year. This is the first midyear adjustment since 2022.

The revised standard mileage rates set forth in Announcement 2026-11, published July 13, 2026, apply to deductible transportation expenses paid or incurred for business, medical or moving purposes on or after July 1, 2026. The new rate applies to mileage allowances that are paid both to an employee on or after July 1, 2026, and transportation expenses paid or incurred by the employee on or after July 1, 2026.

During this period, the revised standard mileage rates are:

76 cents per mile for business travel; and
23.5 cents per mile for medical and moving expenses.

To read the entire article, provided by GTM Tax and Payroll, click here.

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IRS Raises Mileage Rates for Second Half of 2026

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