IRS Raises 2026 Standard Mileage Rates Due to Fuel Costs

The Internal Revenue Service raised optional standard mileage rates for the remainder of 2026, effective July 1, 2026. The agency attributed the midyear adjustment to recent increases in fuel prices, which have been linked to conflict between the United States and Iran over control of the Strait of Hormuz.

The business mileage rate increased to 76 cents per mile from 72.5 cents. Rates for medical and moving expenses rose to 23.5 cents per mile from 20.5 cents, while the deduction for charitable contributions remained fixed at 14 cents per mile.

Data from the American Automobile Association shows the average price of regular gasoline in the United States reached $3.943 per gallon as of July 15, 2026. This figure represents a roughly 25% increase over the previous year.