The business mileage reimbursement rate increased effective 7/1/26. The 2026 IRS business mileage rate is now 76 cents per mile for eligible travel beginning July 1, 2026. The rate increased by 3.5 cents from the 72.5-cent rate that applied during the first half of the year.
The IRS said the midyear revision resulted from recent increases in fuel prices. Although the standard mileage rate is normally updated annually, the IRS can make a midyear adjustment when vehicle operating conditions change substantially. This is not the first time the IRS has divided a year into two mileage-rate periods. In 2022, the business rate increased from 58.5 cents per mile for January through June to 62.5 cents per mile beginning July 1.
2026 IRS business mileage rate:
- January 1-June 30, 2026: 72.5 cents per mile
- July 1-December 31, 2026: 76 cents per mile
- Effective date of the new rate: July 1, 2026
- Midyear increase: 3.5 cents per mile
The business rate is the primary benchmark for organizations reimbursing employees who use personal vehicles for eligible work travel.
Source: IRS Internal Revenue Bulletin 2026-29, Announcement 2026-11.