We wanted to make you aware of a recent IRS announcement that may affect your business recordkeeping and reimbursement practices.
The IRS issued Announcement 2026-11, raising the optional standard mileage rates effective July 1, 2026. The updated rates are as follows:
- Business mileage: 76 cents per mile (72.5 cents per mile 1/1–6/30/2026)
- Medical and moving mileage: 23.5 cents per mile (20.5 cents per mile 1/1–6/30/2026)
- Charitable mileage: 14 cents per mile (unchanged — set by statute)
The mid-year change applies to miles driven on or after July 1, 2026, and creates a split-year framework for the 2026 calendar year. If your business reimburses employees for mileage, uses the standard rate for vehicle expense deductions, or tracks medical travel costs, you will need to apply the old rate for January 1 through June 30 and the new rate for July 1 through December 31.
If you have questions about how this change affects your tax situation, reimbursement policies, or recordkeeping, please do not hesitate to contact your Rudler, PSC advisor.
RUDLER, PSC CPAs and Business Advisors
This e-Tip is presented by The Team at Rudler, PSC.
If you would like to discuss your particular situation, contact us at 859-331-1717.
Mark Benson, CPA, CVA
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