The IRS Changed Your Mileage Rate Mid-Year. Here’s What That Actually Means.

Yeah, you read that right. The IRS doesn’t usually touch mileage rates until right before a new tax year starts. But here we are, mid-2026, with a brand new set of numbers to track.

Let’s break down what changed, why it changed, and what you need to do about it so you don’t screw up your deduction come tax time.

---

What Actually Changed

Starting July 1, 2026, here’s what you’re working with:

• Business mileage: 76 cents per mile, up from 72.5 cents
• Medical mileage: 23.5 cents per mile, up from 20.5 cents
• Moving mileage (active-duty military and certain intelligence community members only): 23.5 cents per mile, up from 20.5 cents
• Charitable mileage: still 14 cents. Untouched. Frozen in time since 1998.

That charitable rate hasn’t moved in almost 30 years. If it had kept pace with inflation, it’d be closer to 29 cents today. But it’s set by statute, not by the IRS’s annual cost study, so it stays put no matter what gas costs.

---

Why Is This Happening Mid-Year?

Gas prices spiked. Hard. Back in December 2025 when the IRS set the original 2026 rates, gas was hovering around $2.89 a gallon—one of the lowest points in years. By July 2026, it had climbed to roughly $3.87 a gallon. That’s a jump of almost a dollar, driven largely by disruption in global oil markets tied to the conflict in Iran.

The IRS bases the business mileage rate on an annual study of both fixed and variable costs of running a vehicle—depreciation, insurance, repairs, maintenance, gas, all of it. When one of those inputs moves that fast, the rate has to catch up.

For context: the last time the IRS made a mid-year adjustment like this was 2022, when gas prices surged past $5 a gallon after Russia invaded Ukraine. Before that, you have to go back further. This isn’t a routine occurrence. It’s a “things got expensive fast” occurrence.

---

Here’s the Part That’ll Actually Trip You Up

You now have two different mileage rates in play for the same calendar year, depending on when the miles happened.

• January 1 through June 30, 2026: use the original rate
• July 1 through December 31, 2026: use the new, higher rate

That means your mileage log needs to track dates as carefully as it tracks distance. If you’re the type to reconstruct your mileage from memory in March (no judgment, but also, some judgment), this is the year that habit catches up with you.

---

Who This Actually Matters For

Thanks to the Tax Cuts and Jobs Act (and now made permanent under the One Big Beautiful Bill Act), most employees can’t deduct unreimbursed business mileage anymore. So if you’re an employer, your reimbursement plan is doing a lot of heavy lifting for your team, and getting the rate right matters more than ever.

Most people also skip the charitable mileage deduction entirely, since you have to itemize to claim it, and the standard deduction ($16,100 single / $32,200 married filing jointly for 2026) makes more sense for a lot of filers. Still worth tracking if you’re a business owner logging volunteer hours or company vehicle use for a nonprofit.

---

What To Do Right Now

Keep a mileage log that includes:

• The date of every trip
• Miles driven
• Starting point and destination
• The business, medical, moving, or charitable purpose

For 2026 specifically, make sure that log clearly separates pre-July 1 mileage from post-July 1 mileage. Photos of odometer readings at the start and end of the year don’t hurt either.

If your current system is “I’ll remember,” this is your sign to upgrade to an app, a notebook, or a spreadsheet. Anything that isn’t your memory in April.

If you’ve got questions about how this affects your specific situation, that’s what we’re here for.

We lead. You relax. Consider your books handled.