Updated IRS Mileage Rates — July 1 through December 31, 2026

Written By Tyler Harris

The IRS announced a mid-year mileage rate increase in Announcement 2026-11. The new business rate of 76 cents per mile applies to deductible business transportation expenses incurred on or after July 1, 2026.

What this means for businesses

If you're using the IRS standard mileage method, business miles driven from July 1 through December 31, 2026 can be calculated at $0.76 per mile.

For example:

  • 1,000 business miles × $0.76 = $760

  • 5,000 business miles × $0.76 = $3,800

  • 10,000 business miles × $0.76 = $7,600

Importantly, businesses should separate mileage driven before July 1 from mileage driven July 1 or later because the applicable rates are different. The IRS specifically states that the original 2026 rate of $0.72 continue to apply to transportation expenses incurred before July 1.

Mileage driven for medical purposes have also increased effective the same dates as well. That mileage is changed as following:

mileage driven before July 1 - $0.205 or 20.5 cents per mile

mileage driven after July 1 - $0.235 or 23.5 cents per mile

If you have questions regarding this change please consult your tax professional. Thanks from the team at Harris CPA Tax & Advisory.

Tyler Harris
Previous

Why you should take more than the RMD
Next

Tax Strategies that anyone can use