The IRS raised the business standard mileage rate from 72.5 cents to 76 cents effective July 1, 2026 — an unusual mid-year change. It means 2026 is a split-rate year: first-half miles are deducted at 72.5 cents, second-half miles at 76 cents, and the two are calculated separately on the same return. For a driver doing 15,000 business miles evenly across the year, the increase is worth about $260. What it requires is a log with dates on it, since the rate now depends on when you drove.
In a move it rarely makes, the IRS has raised the standard business mileage rate in the middle of the year. Effective July 1, 2026, the business rate climbs to 76 cents per mile — up from the 72.5 cents that applied for the first half of the year. If you drive for business, this is money in your pocket, and it changes how you should be logging the rest of 2026.
Here's everything you need to know, in plain English.
The short version: The 2026 IRS business mileage rate is 72.5 cents per mile for miles driven January 1–June 30 and 76 cents per mile for miles driven July 1–December 31. Use the rate that matches the date you drove, not the date you file. The medical and moving rate rose from 20.5¢ to 23.5¢; the charitable rate stays at 14¢.
What changed with the 2026 mileage rate?
On July 13, 2026, the IRS published Announcement 2026-11, raising the new standard mileage rate for business use to 76 cents per mile for the second half of 2026. The stated reason: recent increases in the price of fuel. The medical and moving rate also went up, from 20.5 cents to 23.5 cents per mile. The charitable rate is fixed by law and stays at 14 cents.
Two Rates in One Tax Year: How the Split Works
This is the part that trips people up, so read it twice. For 2026, there is no single mileage rate — there are two, split by date:
| Period | Business Rate | Medical / Moving |
|---|---|---|
| Jan 1 – Jun 30, 2026 | 72.5¢ / mile | 20.5¢ / mile |
| Jul 1 – Dec 31, 2026 | 76¢ / mile | 23.5¢ / mile |
← Scroll to see the full table →
The rule for which rate to use is simple: use the rate that matches the date you drove, not the date you file your taxes or get reimbursed. A business mile driven on June 30 is worth 72.5¢. The same mile driven on July 1 is worth 76¢.
Why did the IRS raise the mileage rate mid-year?
The IRS almost always sets the mileage rate once a year, in late December, and leaves it alone. A mid-year mileage rate change only happens when driving costs shift dramatically — the last time was 2022, when fuel prices spiked. A mid-year bump is the IRS acknowledging that the cost of operating a vehicle has climbed enough that the old rate no longer reflects reality.
For self-employed drivers, that acknowledgment is worth real money. The standard mileage rate isn't just gas — it's the IRS's all-in estimate of what a mile costs you: fuel, insurance, maintenance, tires, repairs, and depreciation. A higher rate means a bigger deduction for every business mile you drive in the back half of the year. That's especially true for high-mileage professionals like mobile notaries and signing agents, who often drive between multiple appointments a day.
How much more is the 76¢ rate worth?
The 3.5-cent jump sounds small until you multiply it by a full year of driving. Consider a driver who logs 15,000 business miles in the second half of 2026:
At the old 72.5¢ rate, those miles would be worth $10,875. At the new 76¢ rate, they're worth $11,400 — an extra $525 in deductions, for doing nothing different except driving after July 1. The more you drive, the more the increase adds up. For the full-year picture and how the two rates stack up against past years, see our 2026 IRS mileage rate guide. And if you're weighing the standard rate against tracking actual costs, a higher per-mile rate tilts the math further toward the standard mileage method for most drivers.
Do I still have to track my miles to claim the higher rate?
Here's the part no rate change fixes. A higher rate only helps you on the miles you can actually document. The IRS doesn't hand you the deduction — you claim it, and you have to be able to prove it with a mileage log showing the date, distance, and business purpose of each trip. A mile you didn't log is worth zero, no matter what the rate is.
And now there's an added wrinkle: because 2026 has two rates, your log needs to make the date of each trip clear, so your first-half miles get 72.5¢ and your second-half miles get 76¢. Guessing at a single blended number for the year is exactly the kind of thing that falls apart in an audit.
What should I do now that the rate changed?
Three things. First, if you've been tracking by hand, make sure every trip has a clear date — that's what splits your miles across the two rates correctly. Second, don't try to reconstruct the year in April; the miles you can't remember are deductions you'll lose. Third, if you're not tracking automatically yet, this rate increase is a good reason to start — the deduction just got more valuable, which means the cost of forgetting a trip just went up too.
TrakMiles Pro logs every business mile automatically with the date, distance, and route attached — so when 2026's two rates need to be applied, your records already have what they need. Mileage plus full accounting, on your device, so tax season is a matter of reading a number, not rebuilding a year.
Frequently asked questions
What is the 2026 IRS business mileage rate?
The 2026 IRS business standard mileage rate is 72.5 cents per mile for miles driven January 1 through June 30, and 76 cents per mile for miles driven July 1 through December 31. The IRS raised the rate mid-year in Announcement 2026-11 due to rising fuel prices.
Does 2026 have two mileage rates?
Yes. Because of the mid-year increase, 2026 has two business mileage rates: 72.5 cents per mile for the first half of the year (January-June) and 76 cents per mile for the second half (July-December). You use the rate that matches the date each trip was driven.
Which mileage rate do I use for 2026?
Use the rate that matches the date you drove, not the date you file your taxes or get reimbursed. A business mile driven on June 30, 2026 is deducted at 72.5 cents; the same mile driven on July 1, 2026 is deducted at 76 cents.
When did the 76 cent mileage rate take effect?
The 76 cents per mile business rate took effect July 1, 2026. It applies to all business miles driven on or after that date through December 31, 2026.
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This article is for general educational purposes and isn't tax, legal, or accounting advice. Rates and rules are current as of July 2026 (IRS Announcement 2026-11) and may change — verify current figures on IRS.gov or with a tax professional.