--- title: IRS Raises Standard Business Mileage Rate to 76¢ Per Mile Beginning July 1, 2026 description: Machen McChesney provides business owners with the new updated standard mileage rate for the remainder of 2026. image: https://info.machen.cpa/hubfs/Reimbursement%202013991238-social.jpg --- [Family of Services](http://machenmcchesney.com/about-us/family-of-companies/)  |  [CPA & Business Advisory](http://machenmcchesney.com)  |  [Payroll, HR & Benefits](http://focuspaysolutions.com/)  |  [Wealth Management](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) Auburn-Opelika (334) 887-7022 | Montgomery (334) 244-8900 [![mm-re-cobrand-fd-blues](https://info.machen.cpa/hs-fs/hubfs/mm-re-cobrand-fd-blues.png?width=279&height=100&name=mm-re-cobrand-fd-blues.png)](http://machenmcchesney.com) Search this site on Google Search Google Search this site on Google Search Google - [Client Portal](https://machenmcchesney.sharefile.com/Authentication/Login) - [1040 Electronic Organizer](https://www.my1040data.com/account/login/HT7902990) - 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Business mileage incurred during the first six months of 2026 should continue to be calculated using the prior **72.5-cent-per-mile** rate. This rate applies to cars, SUVs, vans, pickups, and panel trucks, regardless of whether they are powered by gasoline, diesel, hybrid, or electric technology. **Why the Rate Changed** The IRS periodically reviews the cost of operating a vehicle and adjusts the standard mileage rate when warranted. However, the standard mileage rate is calculated based on all the costs involved in driving a vehicle — not just the price of gas. It’s based on an annual study commissioned by the IRS about the fixed and variable costs of operating a vehicle, including gas, maintenance, repairs and depreciation. Occasionally, if there’s a substantial change in average gas prices, the IRS will change the cents-per-mile rate midyear. Although fuel prices often receive the most attention, they represent only one component of the overall mileage calculation. **Standard Mileage vs. Actual Expenses** Businesses generally have two methods for deducting or reimbursing vehicle expenses: **Standard Mileage Method** - Reimburse business travel at **76 cents per mile** - Simplifies recordkeeping - Eliminates the need to track every vehicle expense **Actual Expense Method** - Deduct actual operating costs, including fuel, maintenance, insurance, repairs, and depreciation - May provide a larger deduction in some situations but requires substantially more documentation Choosing the right method depends on the circumstances and IRS eligibility requirements. **Documentation Still Matters** Even when using the standard mileage rate, employees should maintain contemporaneous mileage records that include the date of each trip, business purpose, starting location, and destination. And the number of business miles driven. Accurate documentation is one of the key requirements for maintaining the tax-free status of mileage reimbursements. **Review Your Policies** As you can see, there are many factors to consider in deciding whether to use the standard mileage rate to deduct vehicle expenses. Employers should review their mileage reimbursement policies, expense reporting procedures, and payroll practices to ensure they reflect the split-year 2026 IRS business mileage rates: **72.5 cents per mile for business travel from January 1 through June 30, 2026**, and **76 cents per mile for business travel beginning July 1, 2026**. Organizations should also verify that their reimbursement program meets the requirements of an IRS accountable plan. Medical Mileage Reminder: The IRS also increased the standard mileage rate for medical travel for the second half of 2026. Mileage driven for qualified medical purposes is 20.5 cents per mile from January 1 through June 30, 2026, and 23.5 cents per mile beginning July 1, 2026. The charitable mileage rate remains unchanged at 14 cents per mile. If you have questions about the new mileage rate, accountable plans, or employee expense reimbursements, contact **Machen McChesney.** Our team can help you stay compliant while ensuring your reimbursement practices remain both efficient and tax-advantaged.  **For more information on the above article or any [accounting & outsourcing services](https://machen.cpa/services/accounting-outsourcing/), contact Amber Cochran Saxon at (334) 321-4729 or by leaving us a message below.**   Topics: [Business Advisory](https://info.machen.cpa/blog/topic/business-advisory), [Payroll, HR & Benefits](https://info.machen.cpa/blog/topic/payroll-hr-benefits) Search this site on Google Search Google ### Recent Posts ### Subscribe to Blog ### Posts by Category - [Business Tax (356)](https://info.machen.cpa/blog/topic/business-tax) - [Business Advisory (239)](https://info.machen.cpa/blog/topic/business-advisory) - [Payroll, HR & Benefits (124)](https://info.machen.cpa/blog/topic/payroll-hr-benefits) - [Audit & Assurance (113)](https://info.machen.cpa/blog/topic/audit-assurance) - [Accounting & Outsourcing (81)](https://info.machen.cpa/blog/topic/accounting-outsourcing) - [Individual Tax (75)](https://info.machen.cpa/blog/topic/individual-tax) - [Tax Planning (33)](https://info.machen.cpa/blog/topic/tax-planning) - [Tax Updates (25)](https://info.machen.cpa/blog/topic/tax-updates) - [Retirement & Wealth Management Planning (18)](https://info.machen.cpa/blog/topic/retirement-wealth-management-planning) - [Taxation (15)](https://info.machen.cpa/blog/topic/taxation) - [Alerts (13)](https://info.machen.cpa/blog/topic/alerts) - [Business Valuation (11)](https://info.machen.cpa/blog/topic/business-valuation) - [News & Events (11)](https://info.machen.cpa/blog/topic/news-events) - [Tax News (11)](https://info.machen.cpa/blog/topic/tax-news) - [Individual Tax Planning (10)](https://info.machen.cpa/blog/topic/individual-tax-planning) - [Not For Profit (10)](https://info.machen.cpa/blog/topic/not-for-profit) - [Retirement Planning (9)](https://info.machen.cpa/blog/topic/retirement-planning) - [Estate Planning (8)](https://info.machen.cpa/blog/topic/estate-planning) - [Manufacturing Industry Insights (7)](https://info.machen.cpa/blog/topic/manufacturing-industry-insights) - [Individuals (1)](https://info.machen.cpa/blog/topic/individuals) - [Insider (1)](https://info.machen.cpa/blog/topic/insider) - [Professional Standard News (1)](https://info.machen.cpa/blog/topic/professional-standard-news) see all [![Returning\_Value](https://info.machen.cpa/hs-fs/file-2504250850-jpg/Machen-Blog-Image/Returning_Value.jpg)](http://machenmcchesney.com/about-us/mission-and-values/) - [![AICPA](https://machenmcchesney.com/img/logos/aicpa.jpg)](https://www.aicpa-cima.com/) - [![NACVA](https://machenmcchesney.com/img/logos/nacva.jpg)](http://www.nacva.com/) - ![2026 INSIDE Public Accounting Top 400](https://machenmcchesney.com/img/2026-ipa-top-400.jpg) - ![2026 Best of Auburn-Opelika](https://machenmcchesney.com/img/2026-best-of-auburn-opelika.jpg) - [![2025 Best of OA](https://machenmcchesney.com/img/2025-best-of-oa.jpg)](https://oanow.com/exclusive/readerschoice/ballot-2025/) - ![2026 Best of OA Winner](https://machenmcchesney.com/img/2026-best-of-oa-winner.jpg) - [![2025 Accounting Today Regional Leaders](https://machenmcchesney.com/img/2025-accounting-today-regional-leaders.jpg)](https://www.accountingtoday.com/) - [![ClearlyRated Best of Accounting](https://machenmcchesney.com/img/2024-best-of-accounting.jpg)](https://www.clearlyrated.com/accounting) - [![ClearlyRated Best of Accounting Employee](https://machenmcchesney.com/img/2024-best-of-accounting-employee.jpg)](https://www.clearlyrated.com/accounting) 1820 East University Drive, Auburn, AL 36830 | Tel: (334) 887-7022 | Fax: (334) 887-7221 1761 Taliaferro Trail, Montgomery, AL 36117 | Tel: (334) 244-8900 | Fax: (334) 364-0927 † This is not a CPA firm. \* Assurance, attest, and audit services provided by Frazier & Deeter, LLC. “Frazier & Deeter” is the brand name under which Frazier & Deeter, LLC\* and Frazier & Deeter Advisory, LLC† and its subsidiary entities provide professional services. 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