IRS Increases Standard Business Mileage Rate Midyear 2026 - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- 3 days ago
- 1 min read
IRS Increases Standard Business Mileage Rate Midyear 2026
Effective Date: Retroactive to July 1, 2026
Due to rising fuel prices, the IRS has increased the standard business mileage rate from 72.5 cents to 76 cents per mile. Although the change was announced on July 13, 2026, it applies retroactively to business mileage incurred on or after July 1, 2026.
Why This Matters
The IRS mileage rate is optional for most private employers but is widely used as the standard reimbursement rate for employees using their personal vehicles for business travel. Employers that reimburse using the IRS rate should ensure reimbursements reflect the updated amount.
Recommended Next Steps
Update payroll or expense reimbursement systems to reflect the new rate.
Review any business mileage reimbursed since July 1, 2026, and determine whether retroactive adjustments are needed.
Communicate the updated reimbursement rate to employees, if applicable.
Note: Some states or employer policies may require a different reimbursement methodology. Employers should ensure their mileage reimbursement practices comply with applicable state laws and internal policies.
Source: IRS Notice 2026-37
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