Payroll & contractors
IRS Mileage Reimbursement Calculator for 2026
The IRS raised the 2026 business mileage rate mid-year, from 72.5 cents to 76 cents on July 1. This splits your miles across both periods so the total is right.
| Jan 1 – Jun 30, 20261,200 mi at 72.5¢ | $870.00 |
|---|---|
| Jul 1 – Dec 31, 2026900 mi at 76.0¢ | $684.00 |
| Total | $1,554.00 |
The rate that applies is the one in effect on the date of travel, not the date the expense is reimbursed. Miles driven in June are paid at the first-half rate even if you file the report in August.
Details people get wrong
- Why are there two rates for 2026?
- The IRS set the business rate at 72.5 cents per mile from January 1, then raised it to 76 cents effective July 1, citing fuel costs. Mid-year changes are unusual but not unprecedented. Any calculator showing a single 2026 rate is wrong for one half of the year.
- Which rate applies to a trip?
- The rate in effect on the date of travel, not the date of reimbursement. Miles driven in June are reimbursed at 72.5 cents even if the expense report is filed in August.
- Is an employer required to pay the IRS rate?
- Federal law does not require mileage reimbursement at all, though some states do require employees be made whole for business expenses. The IRS rate is the maximum that can be reimbursed tax-free — pay above it and the excess is taxable wages.
- Why is the charitable rate unchanged?
- The charitable rate is fixed at 14 cents by statute, so the IRS cannot adjust it for costs. Only Congress can change it, which is why it has stayed flat for years while the business rate moves.