Mileage Rate 2026 – 76 cents per mile effective July 1

Dear School Business Professionals, The Internal Revenue Service announced an increase in the optional standard mileage rate for the final 6 months of 2026. For the final 6 months of 2026, the standard mileage rate for business travel will be 76 cents per mile, up from 72.5 cents effective at the start of the year. The new rates become effective July 1, 2026. For travel from January 1 through June 30, 2026, the rate remains at 72.5 cents. In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2026. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. For more information see Bulletin 2026-29<www.irs.gov/pub/irs-irbs/irb26-29.pdf> (page 49).
School Business Advisory Services Team Santa Barbara County Education Office sbasweb.sbceo.org
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