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In Announcement 2026-11, 2026-29 I.R.B. 49, the IRS amended Notice 2026-10, 2026-4 I.R.B. 378, which sets the standard mileage rates for 2026. The IRS made the change to reflect the rising cost of fuel in 2026. The rates are changed as follows:
| January 1 – June 30 | July 1 – December 31 | |
| Business mileage | 72.5 cents per mile | 76 cents per mile |
| Medical and moving mileage | 20.5 cents per mile | 23.5 cents per mile |
For the period January 1, 2025, through June 30, 2026, the standard mileage rate is 72.5 cents per mile for all business miles. For the period July 1, 2026, through December 31, 2026, the standard business mileage rate is increased to 76 cents per mile. The mileage rate for moving and medical expenses also increased from 20.5 cents per mile to 23.5 cents per mile. The mileage rate for charitable mileage is fixed by statute at 14 cents per mile and has not changed.
Employers should ensure that they are paying the proper mileage rate for the period at issue, particularly in locations such as California that require expense reimbursements. In addition, employers should ensure that their expense reimbursement policies comply with accountable plan rules to ensure reimbursements continue to be made on a tax-exempt basis.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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