IRS Raises the Standard Mileage Rate to 76 Cents for the Second Half of 2026
For the first time since 2022, the IRS has changed the standard mileage rate in the middle of a tax year. Starting July 1, 2026, business miles are worth 76 cents each, up from 72.5 cents. Here is what changed and how to keep your 2026 mileage deduction accurate.
What Changed
On July 13, 2026, the IRS issued Announcement 2026-11, which amends Notice 2026-10 and raises the optional standard mileage rates for the rest of the year. The new rates take effect July 1, 2026 and run through December 31, 2026. The agency pointed to the rising cost of fuel in 2026 as the reason for the adjustment.
The headline change is the business rate, which most self-employed people and small business owners use to deduct their driving. Here are all three rates for 2026, before and after the July 1 cutover:
| Type of driving | Jan 1 to Jun 30, 2026 | Jul 1 to Dec 31, 2026 |
|---|---|---|
| Business | 72.5 cents/mile | 76 cents/mile |
| Medical and moving | 20.5 cents/mile | 23.5 cents/mile |
| Charitable | 14 cents/mile | 14 cents/mile |
The charitable rate is fixed by statute and does not change. Under current law the moving mileage rate applies only to active-duty members of the Armed Forces.
Why a Mid-Year Change Is Rare
The IRS normally sets one mileage rate in December and leaves it in place for the whole calendar year. A mid-year adjustment is unusual. The last one was in 2022, when fuel prices climbed sharply over the summer.
The practical effect is that 2026 now carries two different business rates. Your deduction depends not just on how far you drove, but on when you drove it.
What This Means for Your 2026 Deduction
If you use the standard mileage method, you now have to split your log at July 1. Miles driven January 1 through June 30 are deducted at 72.5 cents. Miles driven July 1 through December 31 are deducted at 76 cents. You cannot apply the higher rate to the entire year.
An example: split the year at July 1
Say you drive 6,000 business miles in the first half of the year and another 6,000 in the second half. Your deduction is:
- 6,000 miles at 72.5 cents = $4,350
- 6,000 miles at 76 cents = $4,560
- Total = $8,910
Applying a single rate to all 12,000 miles would give you the wrong number, off by more than $200 in either direction. The dates matter.
That makes a dated mileage log more important than usual this year. If you cannot show when each trip happened, you cannot defend which rate you applied to it.
How Vuuv Handles the Split
Vuuv records the date and distance of every business trip as you drive, using GPS on the mobile app. Because each trip keeps its own dated record, Vuuv applies the correct rate to each one for you: 72.5 cents for trips through June 30, and 76 cents for trips from July 1 onward. There is no separate log to keep and no manual split to do.
Your Mileage Report and Year-End Tax Packet add up each half of the year at its own rate, so the deduction that reaches your Schedule C or Schedule E is already correct for the mid-year change. Want to sketch the numbers first? The free mileage deduction calculator reflects the new rates too.
The update is live across iOS, Android, and the web at vuuv.co. Trips you have already logged this year keep their dates, so nothing needs to be re-entered.