The IRS has increased the 2026 standard mileage rates for certain business, medical, and moving expenses incurred on or after July 1, 2026.
This midyear adjustment means taxpayers and businesses will need to use two different mileage rates when calculating eligible vehicle expenses for 2026.
New standard mileage rates for the second half of 2026
For eligible mileage driven from July 1 through December 31, 2026, the standard mileage rates are:
- 76 cents per mile for business use, increased from 72.5 cents
- 23.5 cents per mile for medical purposes, increased from 20.5 cents
- 23.5 cents per mile for qualifying moving purposes, increased from 20.5 cents
- 14 cents per mile for charitable service, unchanged
The charitable mileage rate remains the same because it is set by law rather than adjusted annually by the IRS.
The date of your mileage matters
The increased rates do not apply retroactively to the beginning of the year.
Eligible mileage driven between January 1 and June 30, 2026, remains subject to the earlier rates of 72.5 cents per mile for business use and 20.5 cents per mile for medical and qualifying moving purposes.
Mileage driven on or after July 1 should be calculated using the new rates.
This makes accurate, date-based mileage records especially important for 2026. Businesses may also need to update their employee reimbursement policies or accounting systems to reflect the midyear change.
Moving mileage remains limited
The moving mileage rate is not available for ordinary personal moves.
It generally applies only to qualifying active-duty members of the Armed Forces moving under military orders, as well as certain eligible members of the intelligence community.
Most taxpayers can no longer deduct personal moving expenses.
Keep complete mileage records
Using the standard mileage rate does not remove the need for proper documentation.
Your records should identify:
- The date of each trip
- The number of miles driven
- The destination
- The business, medical, charitable, or other qualifying purpose
Because the mileage rates changed halfway through the year, separating trips by date will help ensure the correct rate is applied.
Should you use the standard mileage rate?
The standard mileage rate is an optional method for calculating eligible vehicle expenses. Depending on your circumstances, another method may produce a different result.
The best approach can depend on how the vehicle is used, the expenses incurred, and how mileage has been reported in previous years.
Before changing methods or calculating a deduction, it is worth discussing your records with a tax professional.
Need help with the updated mileage rates?
Midyear mileage changes can create additional recordkeeping and reimbursement questions for both individuals and businesses.
Torkelson & Associates CPAs can help you determine which rate applies, review your mileage documentation, and ensure eligible vehicle expenses are reported correctly.
Contact Torkelson & Associates CPAs for guidance on the updated 2026 standard mileage rates.
You can also review the official IRS guidance in Internal Revenue Bulletin 2026-29.