The IRS has announced updated standard mileage rates effective July 1 through December 31, 2026. Employers that reimburse employees for business travel should review these changes and update their reimbursement policies as needed.
The new standard mileage rates are:
- Business: $0.76 per mile
- Medical or Qualified Moving: $0.235 per mile
- Qualified moving expenses apply only to eligible active-duty Armed Forces members and certain intelligence community employees.
- Charitable Service: $0.14 per mile (unchanged)
For comparison, the rates during the first half of 2026 (January 1 – June 30) were:
- Business: $0.725 per mile
- Medical or Moving: $0.205 per mile
If your organization reimburses employees based on the IRS standard mileage rate, now is a good time to ensure your payroll and expense reimbursement processes reflect the updated amounts.
Staying current with IRS updates helps maintain compliance and ensures employees are reimbursed accurately for eligible travel expenses.