The IRS has announced an increase to the optional standard mileage rates for the remainder of 2026, providing additional tax relief for businesses and individuals facing higher fuel costs.

Effective July 1, 2026, the updated standard mileage rates are:

• Business: 76 cents per mile (up from 72.5 cents)
• Medical and Moving: 23.5 cents per mile (up from 20.5 cents)
• Charitable: 14 cents per mile (unchanged by law)

According to the IRS, the increase reflects the significant rise in fuel prices during the first half of the year. The American Automobile Association (AAA) reported that the national average price of regular gasoline climbed from $2.819 per gallon in January to $3.890 per gallon by mid-July, an increase of approximately 38%.

This midyear adjustment is relatively uncommon, with the last one occurring in 2022. All other provisions of IRS Notice 2026-10 remain unchanged.

What This Means for Taxpayers

If you use your personal vehicle for business, medical, or qualified moving purposes, it's important to ensure your mileage reimbursement or tax deductions reflect the updated rates for travel occurring on or after July 1, 2026.

Businesses should also review their employee reimbursement policies to confirm they are using the correct mileage rate going forward.

As always, maintaining accurate mileage logs remains essential for substantiating deductions and reimbursements.

Learn More

The full announcement and additional details are available in the Journal of Accountancy article:

IRS Raises Standard Mileage Rates for Remainder of 2026

https://www.journalofaccountancy.com/news/2026/jul/irs-raises-standard-mileage-rates-for-remainder-of-2026/

If you have questions about how this change affects your business or individual tax situation, contact the team at Reagan & Reagan CPA.