IRS Announces Mid-Year Mileage Rate Increase

The IRS has announced updated standard mileage rates, effective July 1, 2026.

Business Travel: Increased from 72.5¢ to 76¢ per mile

Medical & Qualified Moving Travel: Increased from 23¢ to 23.5¢ per mile

Charitable Service: Remains unchanged at 14¢ per mile

If your business reimburses employees for business travel, now is the time to:
• Update mileage reimbursement policies.
• Verify payroll and expense reporting systems reflect the new rates.
• Remind employees to maintain accurate mileage logs.

Mid-year mileage rate changes are relatively uncommon, making it important to apply the correct rate based on when the miles were driven.

Have questions about how these updated rates may affect your business or tax planning? Contact the team at DWD CPAs & Advisors—we’re here to help.