On July 13, 2026, the IRS announced a mid-year increase to the standard mileage rate for the remainder of the year. Effective July 1, 2026, mileage for business travel can be expensed at 76 cents per mile, up from 72.5 cents per mile. Medical and moving mileage rates also rose, from 20.5 cents to 23.5 cents per mile. The charitable rate stays fixed by statute at 14 cents per mile and didn't change.
This is only the second mid-year adjustment the IRS has made in over a decade, the first being back in 2022, and both increases came in response to a sharp rise in fuel prices. Note that these are optional standard rates; if you use actual expenses instead, this change doesn't apply to you.
Note: Because the rate changed partway through the year, you'll need to track your 2026 business mileage in two separate buckets: miles driven January 1 through June 30 (72.5 cents per mile) and miles driven July 1 through December 31 (76 cents per mile). Most mileage tracking apps handle this automatically once you update the rate, but if you're logging manually, make sure your records show the date of each trip so you can apply the correct rate.
Mileage tracking tools
There are many ways to track mileage from mileage logs to tools. Here are some tips for updating the rate from a variety of tools we have used:
- Expensify: Set Time and Distance Rates - This is the current official Expensify help doc, walks through Settings > Workspace > Distance Rates, exactly where you set or update the per-mile rate. (Expensify also has a great article you can reference for more detail on this change. We also have a video showing you 4 methods for tracking mileage.
- QuickBooks Online: Reimburse employees' mileage and vehicle expenses - This is Intuit's current help article, last updated August 4, 2026, on setting up the reimbursement rate and process for mileage.
Gas prices are still no fun, so make sure you're capturing the full benefit of this 2026 mileage rate increase.
Frequently asked questions
What is the 2026 IRS mileage rate?
For the second half of 2026 (effective July 1), the business mileage rate is 76 cents per mile, up from 72.5 cents. Medical and moving mileage is 23.5 cents per mile, up from 20.5 cents.
Why did the IRS raise the mileage rate mid-year?
Rising fuel prices prompted the increase. It's only the second time the IRS has made a mid-year adjustment in over a decade, the first being in 2022.
Does the mileage rate increase apply if I deduct actual vehicle expenses instead of the standard rate?
No. This change only affects the optional standard mileage rate. If you track and deduct actual expenses, this update doesn't apply to you.
Don't let a rate change slip past you
Mid-year rate changes like this one are easy to miss if you're not actively watching for them, and missing one means either under- or over-claiming your mileage deductions. LedgerGurus' income tax and ecommerce accounting services make sure changes like this get caught and applied correctly, so your numbers stay accurate all year.
