What to Know About the New IRS Mileage Rates

Driving costs have surged in 2026 due to rising gasoline prices. To help taxpayers keep pace with these expenses, the IRS has announced mid-year increases to optional standard mileage rates, effective July 1.

Here are the updated rates for the second half of 2026:

• Business: 76 cents per mile (up 3.5 cents from 72.5)

• Medical & Active-Duty Military Moving: 23.5 cents per mile (up 3 cents from 20.5)

• Charitable Activities: 14 cents per mile (unchanged, fixed by federal law)

This adjustment provides welcome tax relief if you drive for work, medical care, or military relocation.

Key Action Step: Because this rate shift applies to the second half of the year, split your mileage logs into two distinct periods (Jan. 1–June 30 and July 1–Dec. 31). Updating your log now ensures you maximize deductions and reduce your overall tax burden. Consider consulting a tax professional to make sure you claim every eligible dollar.