IRS Increases Mileage Rate for 2026: What Business Owners Need to Know

The IRS has officially increased the standard mileage rate for 2026, effective July 1—and while tax updates aren’t usually the most exciting news, this one matters for anyone who spends time on the road for their business. Rising fuel and vehicle costs pushed the IRS to make a rare mid‑year adjustment, giving business owners a little more relief when it comes to deducting business travel.

For the first half of 2026 (January 1–June 30), the business mileage rate sits at 72.5 cents per mile. Beginning July 1, that rate increases to 76 cents per mile for the second half of the year. Medical and moving mileage also shift from 20.5 cents to 23.5 cents mid‑year, while charitable mileage remains unchanged at 14 cents.

If you or your team drive to client meetings, job sites, deliveries, or anything in between, this split‑year structure is worth noting. It’s also a great reminder to double‑check your mileage tracking habits. Clean logs mean clean deductions, and this update is the perfect nudge to make sure your systems are working for you—not against you.

Mileage is one of the simplest deductions available, but only when tracked correctly. With the new rate in place, now’s the time to update your apps, refresh your processes, and make sure everyone knows which rate applies to which dates. A little attention now saves a lot of frustration later.