What changed
The IRS has issued Announcement 2026-11 revising the optional standard mileage rates under Notice 2026-10. Effective July 1, 2026, the standard mileage rate for business travel increases from 72.5 cents to 76 cents per mile. The revision is driven by recent increases in the price of fuel.
All revised rates at a glance
Business use: 76 cents per mile (up from 72.5 cents). Medical and moving purposes: 23.5 cents per mile (unchanged). Charitable contributions: 14 cents per mile — this rate is fixed by § 170(i) of the Internal Revenue Code and cannot be changed by IRS announcement.
Which trips the new rate covers
The 76-cent rate applies to deductible transportation expenses paid or incurred for business, medical, or moving purposes on or after July 1, 2026. It also applies to mileage allowances paid to an employee on or after July 1, 2026, for transportation expenses the employee paid or incurred on or after that date. Trips completed before July 1, 2026 continue to use the Notice 2026-10 rates.
What you need to do
Update your reimbursement policy and any mileage-log templates to reflect 76 cents per mile starting July 1. If you pay employees a mileage allowance, verify that your payroll or expense system is updated before processing the first post-July 1 reimbursement run. Keep separate mileage records for trips before and after July 1 — the IRS will expect the correct rate applied to each period. If you have questions about how the rate change affects your deduction or reimbursement setup, contact us and we can walk through your specific situation.