Jul 27, 2026

IRS Makes Rare Midyear Change to Mileage Rates

A break for many who have been hit by high gas prices: The IRS has quietly announced a revision to the optional standard mileage rates for computing the allowable deductible costs of operating an automobile. Read through to see what has changed—and what hasn't.

 

In Announcement 2026-11, the IRS has announced that starting July 1, 2026, the revised standard mileage rates are:

(1) Business: 76 cents per mile (up from 72.5 cents per mile)

(2) Medical and moving 23.5 cents per mile (up from 20.5 cents per mile)

The mileage rate that applies to the deduction for charitable contributions is fixed under § 170(i) of the Internal Revenue Code at 14 cents per mile and is not changed.

This announcement changes the rates published in Notice 2026-10, which took effect at the beginning of the year. It is very rare for the IRS to make a midyear change like this.

The revised standard mileage rates set forth in this announcement apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2026, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2026, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2026.

What about the previous notice?

The standard mileage rates set forth in Notice 2026-10 continue to apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes before July 1, 2026, and to mileage allowances paid (1) to an employee before July 1, 2026, or (2) with respect to transportation expenses paid or incurred by the employee before July 1, 2026.

This can be a little confusing, as the new announcement does not entirely override the earlier Notice 2026-10. The IRS emphasizes that all other provisions of Notice 2026-10 remain in effect. Taxpayers should work with tax professionals to make sure they are following all the rules while taking full advantage of the new rates.

©2026


 

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