IRS Increases 2026 Mileage Rates Due to Rising Fuel Prices
The IRS has increased 2026 mileage rates for the second half of the year due to rising fuel prices. Here are the changes that took effect on July 1.
The business standard mileage rate is 76 cents per mile, up from 72.5 cents per mile in effect during the first half of the year.
As to miles driven for medical or moving purposes, the standard rate has risen to 23.5 cents per mile, up from 20.5 cents per mile. The standard rate for moving purposes remains limited to qualified active-duty members of the Armed Forces and certain members of the intelligence community.
These mid-year rate increases are not retroactive. Employers should continue using the previous mileage rates for expenses paid or incurred before July 1.
More info: Announcement 2026-11, IRB 2026-29.
- Share on
Free Training & Resources
Webinars
Provided by SkyStem
Further Reading
Thinking about adding tips and overtime compensation to box 14 of Form W-2 for TY 2025? Two recent IRS notices have provided insight. Th...
Earned wage access, also known as on-demand pay, is being leveraged by your peers as a key recruitment and retention tool for workers who m...
Compensation is the top challenge for employers in 2025, with nearly half (44%) reporting it as their primary concern, according to a recen...
With tax year 2024 Forms W-2 out the door, it’s time to turn your attention toward the changes IRS has made for TY 2025 forms. The IRS...
Now more than ever, businesses should be prepared to understand and handle union contracts. The reason? A new ruling from the National ...
The Department of Labor (DOL) has released its final overtime rule, bringing mid-year changes and a higher-than-expected salary level incre...
