IRS Lifts 2026 Mileage Rate to 76 Cents as Gas Jumps 34%

3 articles · Updated · Forbes · Jul 13

July 1 marks a rare midyear IRS reset: business mileage rose to 76 cents a mile from 72.5 cents, while medical and eligible moving rates increased to 23.5 cents from 20.5 cents.
AAA put regular gasoline at about $3.87 a gallon on July 13, up roughly 98 cents from December 2025, with the IRS citing fuel-price spikes tied to oil-market disruption from the war in Iran.
2026 now has two mileage schedules: the original rates still apply to expenses from Jan. 1 through June 30, and the higher rates apply to eligible costs paid or incurred on or after July 1.
Employers using accountable plans must match reimbursements to both when the expense was incurred and when the allowance was paid, while taxpayers need logs that separate pre- and post-July 1 miles.
The charitable rate stayed fixed at 14 cents a mile, unchanged since 1998, underscoring that the adjustment mainly affects business, medical and limited moving deductions.