Current Rate Snapshot: July-December 2026
IRS Notice 2026-10 set the original 2026 rates in December 2025. Announcement 2026-11 then modified them effective July 1 after recent fuel-price increases: business moved from 72.5¢ to 76¢, and medical/moving moved from 20.5¢ to 23.5¢.
How to Apply the Two 2026 Periods
Use the original Notice 2026-10 rates for transportation expenses paid or incurred before July 1. Use the revised Announcement 2026-11 rates for qualifying expenses paid or incurred on or after July 1, subject to the allowance timing rule in the announcement.
Do not average the rates before calculating a claim. Keep January-June and July-December mileage as separate line items so the rate, source, and date remain auditable.
Planning Implications for Employers and Employees
If reimbursing employees at the IRS rate, ensure payroll systems apply 72.5¢ before July 1 and 76¢ after July 1 for 2026 mileage. If using a lower rate, confirm your accountable plan documentation and communicate the policy clearly to employees.
Self-employed individuals claiming the standard mileage rate for 2026 should maintain contemporaneous mileage logs — the IRS requires adequate records for all mileage deductions, and logs created at tax time rather than at the time of each trip do not meet the standard.