The Internal Revenue Service (IRS) has announced a mid-year increase to the standard mileage rates for 2026. The revised rates apply to transportation expenses paid or incurred on or after July 1, 2026, reflecting recent increases in fuel prices.
The updated mileage rates are as follows:
| Mileage Category | Jan. 1–June 30, 2026 | July 1–Dec. 31, 2026 | Change |
|---|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile | +3.5¢ |
| Medical | 20.5¢ per mile | 23.5¢ per mile | +3¢ |
| Moving | 20.5¢ per mile | 23.5¢ per mile | +3¢ |
| Charitable | 14¢ per mile | 14¢ per mile | No change |
The rates apply to fully electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
To read more, IRS Notice 2026-29 may be found on the IRS website here.
Is your company seeking a more accurate vehicle reimbursement solution than the IRS-standard mileage rate? Is the IRS-standard mileage rate creating unpredictable cashflows and becoming too expensive for your company right now? Let’s connect, and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.
AutoReimbursement.com’s Vehicle Reimbursement Program Comparison Guide explains alternative reimbursement programs, like a Fixed and Variable Rate Program, and how it can provide cost savings to your company as well as benefit your drivers.