Mileage Rate Goes Up to 76¢ for the Rest of 2026
The IRS set one mileage rate for 2026 back in December. Now it has raised it partway through the year. If you drive to your contracts, or drive a lot while you are on one, here is what changed, what stayed the same, and why the date matters.
The new rates
For miles driven from July 1 through December 31, 2026, the IRS standard mileage rates are:
Business: 76 cents a mile, up from 72.5 cents
Medical and moving: 23.5 cents a mile, up from 20.5 cents
Charitable: 14 cents a mile, unchanged
The IRS gave fuel prices as the reason. The change was published as Announcement 2026-11 in the Internal Revenue Bulletin on July 13.
It is not retroactive
This is the part to get right. The increase applies only to miles driven on or after July 1.
Miles driven January 1 through June 30, 2026 stay at 72.5 cents for business.
Miles driven July 1 through December 31, 2026 use 76 cents.
So 2026 now has two business rates, split at July 1. If you add up your miles for the whole year at the end, you will need to know how many fell before July 1 and how many came after.
A simple example
Say you drive 400 miles to a new contract.
If you made that drive in June, 400 miles at 72.5 cents comes to $290.
If you make it in July, 400 miles at 76 cents comes to $304.
Same drive, two different numbers, depending only on the date.
Keep your records split by date
If you track your miles, the split makes dates more important than ever. A note with the date, where you went and why is enough to tell which side of July 1 a trip falls on. If your notes so far only have totals, now is an easy time to start adding dates.
Whether any of your driving counts as business driving, and how the rate applies to you, still depends on your job and your tax situation. The rate change does not change that question; it only changes the number.
How this fits your stay
Higher fuel prices are one more reason to think about how far your housing is from your facility. A shorter daily drive saves fuel, time and wear on your car, whatever the rate.
At ReNests, I rent furnished private rooms in Milwaukee to traveling healthcare professionals. Every bedroom has its own keypad lock, there is one adult per room, and you deal with a real, named host. Housing that fits your stipend, often little to nothing out of pocket. You can find the listing on Furnished Finder.
This post explains the rate change; it is not tax advice. Check with a tax professional about whether and how the mileage rates apply to your situation.
Here if you need anything, Susan
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