IRS Mileage Rates: 2022–2026 at a Glance
The IRS standard mileage rate for business use rose from 58.5 cents per mile at the start of 2022 to 72.5 cents in 2026. This steady upward trend reflects persistent cost pressures across fuel, maintenance, and vehicle depreciation — with the notable exception of the 2022 mid-year adjustment, triggered by a sudden spike in gasoline prices.
Year-by-Year Business Mileage Rates
| Tax Year | Business Rate (¢/mile) | YoY Change | Notes |
|---|---|---|---|
| 2022 (Jan–Jun) | 58.5 | — | Starting point; rate set in December 2021 |
| 2022 (Jul–Dec) | 62.5 | +4.0¢ | Mid-year adjustment — first since 2011 — triggered by $5+/gallon gas |
| 2023 | 65.5 | +3.0¢ | Continued fuel and inflation pressure |
| 2024 | 67.0 | +1.5¢ | Moderating inflation; smallest increase of the period |
| 2025 | 70.0 | +3.0¢ | Inflation-driven increase back to larger step |
| 2026 | 72.5 | +2.5¢ | Current rate; up 14¢ total from January 2022 |
IRS optional standard mileage rates for business use, 2022–2026. Data from IRS annual notices. Medical/moving and charitable rates follow separate schedules.
What Drove the 2022 Mid-Year Adjustment?
In June 2022, the IRS took the unusual step of announcing a mid-year rate increase — the first since 2011 — raising the business rate from 58.5¢ to 62.5¢ effective July 1, 2022. The trigger was a sharp spike in US gasoline prices, which hit a national average above $5.00 per gallon in June 2022. The IRS determined that the standard annual rate set in December 2021 no longer reflected actual vehicle operating costs.
For taxpayers claiming 2022 mileage, this means January–June miles use 58.5¢, while July–December miles use 62.5¢. The IRS has not issued a mid-year adjustment since 2022.
How the IRS Calculates the Standard Mileage Rate
The IRS determines the optional standard mileage rate based on an annual study of the fixed and variable costs of operating an automobile. The study factors in depreciation, maintenance and repairs, tires, fuel, insurance, and license and registration fees.
The business rate reflects the full per-mile cost. Medical and moving rates (20.5¢ for 2026) are based on variable costs only — primarily fuel and maintenance — while the charitable rate (14¢) is set by statute and has not changed since 1998.
What This Means for Mileage Reimbursement in 2026
At 72.5 cents per mile, a 100-mile business trip reimburses $72.50. Over a year, someone driving 10,000 business miles would claim $7,250 in reimbursement or deduction — $1,400 more than the same mileage at the January 2022 rate.
For employers, the higher rate increases the cost of mileage reimbursement programs. Reimbursing at or below the IRS rate through an accountable plan keeps the reimbursement non-taxable to the employee. Employers who pay less than the IRS rate should direct employees to the company’s mileage reimbursement policy and note that employees may claim the difference as an unreimbursed employee business expense.