Internal Revenue Service Raises 2026 Mileage Rates Effective July 1 for Business and Medical Expenses

The Internal Revenue Service (IRS) increased its standard mileage rate for several types of driving for the remainder of 2026. This mid-year adjustment reflects fluctuating fuel prices, according to IRS guidance. Effective July 1, the business mileage rate rose to 76 cents per mile. Separately, the rate for qualifying medical and moving expenses was raised to 23.5 cents per mile. This adjusted rate is intended to help ensure that costs are accurately reflected for taxpayers filing 2026 returns next year. The rate for driving in service of charitable organizations remains fixed at 14 cents per mile. While the IRS typically sets these standards annually, the necessity for this mid-year change underscores the volatility of operating costs. Gas prices nationwide remain volatile, adding uncertainty to overall budgeting for drivers. Businesses relying on the IRS standard mileage rate for employee reimbursement should note these new figures.

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