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 76 cents for July-December 2026. The sequence includes two split years: 2022 after a fuel-price spike and 2026 after a later mid-year revision.
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 (Jan–Jun) | 72.5 | +2.5¢ | Original 2026 rate under Notice 2026-10 |
| 2026 (Jul–Dec) | 76.0 | +3.5¢ | Mid-year revision under Announcement 2026-11 |
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, January–June miles use 58.5¢, while July–December miles use 62.5¢. The same date-splitting principle applies to 2026: 72.5¢ before July 1 and 76¢ from July 1.
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 are 20.5¢ for Jan-Jun and 23.5¢ for Jul-Dec 2026, 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 76 cents per mile, a 100-mile business trip from July through December 2026 reimburses $76.00. A 10,000-mile claim would be $7,250 if all miles were before July 1 or $7,600 if all were after July 1, so annual logs must preserve the date split.
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 state the policy rate clearly; a lower payment does not automatically create a federal employee deduction because ordinary W-2 employees generally cannot deduct unreimbursed mileage.