IRS Raises Standard Mileage Rates for the Rest of 2026
— What It Means for Your Vehicle Deductions
If you drive for your practice — client visits, supply runs, off-site treatments, conferences — this one's worth a few minutes of your time.
On July 13, the IRS announced a mid-year bump to the standard mileage rates, effective July 1 through December 31, 2026. It's only the second time the IRS has made this kind of adjustment mid-year since 2000, with the last one happening back in 2022 amid a similar spike in gas prices. This year's increase is driven by the same culprit: rising fuel costs.
The New Rates (July 1 – Dec. 31, 2026)
Business: 76 cents per mile, up from 72.5 cents
Medical: 23.5 cents per mile, up from 20.5 cents
Moving (active-duty military only): 23.5 cents per mile
Charitable: 14 cents per mile — unchanged, since this rate is set by statute rather than adjusted by the IRS
Why This Matters for You
If you use the standard mileage method to deduct vehicle expenses, you'll need to track your business mileage in two separate periods for 2026: January 1 – June 30 at 72.5 cents per mile, and July 1 – December 31 at 76 cents per mile. Mixing these up — or applying one flat rate to the whole year — is a common and easily avoidable error.
A few practical steps:
Split your mileage log at June 30. If you're using an app like MileIQ or Everlance, most will handle this automatically, but it's worth confirming your totals are dated correctly.
Double-check odometer or app records for the first half of the year now, while it's fresh, rather than trying to reconstruct it in April.
If you use the actual expense method instead of standard mileage, this change doesn't apply to you directly — but it's a good reminder to keep receipts and records current either way.
The Bottom Line
This is a small rate change, but it's an easy one to get wrong on next year's return if your mileage log doesn't reflect the split. If you have questions about which deduction method makes sense for your practice, or want help getting your mileage tracking set up properly, reach out — we're happy to help.
This post is for general informational purposes and isn't tax advice specific to your situation. Talk to your accountant about how this applies to you.