IRS Announces Increase In Standard Mileage Rates For The Second Half Of 2026

Higher fuel prices prompted the IRS to raise the business, medical, and qualified moving rates for mileage on or after July 1, 2026.

The IRS is increasing its standard mileage rates midyear, citing recent increases in fuel prices. Beginning July 1, 2026, the optional standard mileage rates for the use of a car, van, pickup, or panel truck will be: - 76 cents per mile driven for business use, up from 72.5 cents. - 23.5 cents per mile driven for medical purposes, up from 20.5 cents.

- 23.5 cents per mile driven for moving purposes by eligible active-duty members of the Armed Forces and certain members of the intelligence community, up from 20.5 cents. - 14 cents per mile driven for charitable miles (unchanged). The revised rates apply to eligible transportation expenses paid or incurred on or after July 1, 2026.

The rates originally announced for 2026 continue to apply to expenses paid or incurred from January 1 through June 30, 2026. That means there are now two sets of standard mileage rates for 2026: Why Did The IRS Change The Rates Midyear?

The IRS ordinarily sets the optional standard mileage rates just before the tax year. This midyear adjustment was prompted by recent increases in fuel prices. When the IRS announced the original 2026 rates in late December, gas prices were near their lowest level in years.

The national average for regular gasoline was about $2.89 per gallon in December 2025. As of July 13, 2026, AAA put the national average at roughly $3.87 per gallon, an increase of about 98 cents, or 34%. Much of that increase reflects the disruption and uncertainty in global oil markets caused by the war in Iran, including concerns about production and the movement of oil through the Strait of Hormuz.

As a result, the IRS increased the mileage rates. The IRS last made a midyear mileage-rate adjustment in 2022, after gasoline prices surged following Russia's invasion of Ukraine. The national average reached roughly $5 per gallon that June, amid higher crude oil prices, sanctions, and concerns about global energy supplies.

Why Are The Business, Medical, Moving and Charitable Mileage Rates Different? The standard mileage rate for business use is based on an annual study of both the fixed and variable costs of operating an automobile. Those costs include depreciation, insurance, repairs, tires, maintenance, gas, and oil.

By contrast, the rates for medical and moving purposes are based on variable operating costs. That explains why the business rate is significantly higher than the medical and moving rates—and why all three rates can be affected by higher fuel prices.