The IRS has increased the optional standard mileage rates for the second half of 2026 in response to rising fuel costs. The revised rates apply to deductible transportation expenses paid or incurred on or after July 1, 2026. That means taxpayers and employers should pay close attention to when the mileage occurred, as different rates apply during the first and second halves of the year.

While the IRS allows standard mileage rates to be used for cars, vans, and pickups used for business purposes, it’s important to apply the appropriate rate based on the date of travel.

2026 Standard Mileage Rates

For travel from January 1 through June 30, 2026, the standard mileage rates are:

  • 72.5 cents per mile for each business mile
  • 20.5 cents per mile for medical purposes
  • 20.5 cents per mile to cover moving or medical purposes for qualified active-duty members of the Armed Forces and certain members of the intelligence community
  • 14 cents per mile driven for charitable organizations

For travel on or after July 1, 2026, the updated standard mileage rates are:

  • 76 cents per mile for each business mile
  • 23.5 cents per mile for medical purposes or moving expenses
  • 14 cents per mile driven for charitable organizations, which remains unchanged because it is set by statute

What the Mid-Year Change Means for Employers and Taxpayers

Because the IRS made a mid-year adjustment, 2026 has a split-year mileage reimbursement framework. Employers should use the original rates for qualifying travel before July 1, 2026, and the updated rates for mileage reimbursements related to travel on or after July 1, 2026.

For businesses that reimburse employees under an accountable plan, this makes accurate mileage tracking especially important. Employees should document the date, business purpose, and number of miles driven so reimbursements are calculated using the correct rate.

For details and situations where you cannot use the standard mileage rate, visit: IRS Standard Mileage Rates.

Contact a Pinion tax advisor with questions about this deduction and its applicability.