The Internal Revenue Service (IRS) announced on July 13, 2026, that it had increased the standard business mileage reimbursement rate from 72.5 cents per mile to 76 cents per mile in response to recent increase in the price of fuel. This increase took effect on July 1, 2026, and will remain effective until the end of 2026.
|
January 1 – June 30 |
July 1 – December 31 |
|
|
Business |
72.5 cents per mile |
76 cents per mil |
Employers must reimburse employees for necessary work-related travel, excluding commuting. Paying reimbursement at the IRS mileage rate is the safest way to satisfy this requirement. Accordingly, employers should now increase their business mileage reimbursement rates to match the new IRS rate.
*Special thanks to CDF law clerk Charlie Quest for his research and contributions to this article.
