This IRS Announcement raises the mid-year standard mileage rates for computing deductible driving costs.  Effective for travel on or after July 1, 2026, the business mileage rate increased to 76 cents per mile (up from 72.5 cents), and the medical and moving rate increased to 23.5 cents per mile (up from 20.5 cents).

These mid-year hikes are the IRS's response to fluctuating fuel costs across the country. Taxpayers use these rates to calculate their tax deductions instead of tracking and calculating all of their actual vehicle expenses.

Here is how the rates updated:

• Business Use: 76 cents per mile
• Medical / Moving Use: 23.5 cents per mile
• Charitable Use: 14 cents per mile (unchanged)