Citing the increase in the cost of fuel, the IRS set a higher optional standard mileage rate used to calculate the deductible costs of operating an automobile for business for the remainder of 2026. Deductible transportation expenses paid or incurred starting July 1, 2026, will have the new rates applied.
The standard mileage rate has been increased from 72.5 to 76 cents per mile for business use. For medical and moving purposes, the rate increased from 20.5 to 23.5 cents per mile. The rate for charitable uses remains unchanged at 14 cents per mile.
See IRS Announcement 2026-11 for full details.
