The IRS has made a rare midyear change to the 2026 standard mileage rates.

Effective July 1, 2026, the optional standard mileage rates are:

• 76 cents per mile for business use — up from 72.5 cents for the first half of 2026.
• 23.5 cents per mile for medical and moving purposes — up from 20.5 cents for the first half of 2026.
• 14 cents per mile for charitable use — unchanged because that rate is set by statute.

The IRS says the midyear adjustment results from recent increases in fuel prices. IRS Announcement 2026-11 modifies the rates originally announced for 2026.

The important part: 2026 now has two mileage rates

The new rates are not retroactive to January 1.

For deductible transportation expenses paid or incurred before July 1, 2026, the original 2026 rates continue to apply:

• 72.5 cents per mile for business use; and
• 20.5 cents per mile for medical and moving purposes.

For qualifying mileage on or after July 1, 2026, use the revised 76-cent and 23.5-cent rates.

That distinction matters when documentation or calculations span both halves of 2026.

Why It Matters in Affordable Housing

Mileage rates can show up in affordable housing compliance in more than one way.

First, the rate may affect the documentation used to determine net income from self-employment or a business when vehicle expenses are calculated using the IRS standard mileage method. Gig-economy work such as delivery and rideshare driving continues to make this a practical issue in income files.

Second, for HUD programs that permit a health and medical care expense deduction, transportation to and from medical treatment may be an eligible expense. HUD guidance has long recognized actual transportation cost or, when driving a vehicle, a mileage rate based on IRS rules.

The practical lesson is simple: do not automatically use one mileage rate for every 2026 mile.

If you are reconstructing actual 2026 expenses, determine when the mileage occurred. Mileage before July 1 remains subject to the first-half rate; qualifying mileage on or after July 1 uses the new rate. If you are projecting qualifying mileage that will occur after July 1, the revised rate is the relevant IRS rate.

What should compliance staff do now?

Review forms, worksheets, calculation tools, and internal guidance that still show the original 2026 rates. In particular:

• update the business mileage rate to 76 cents for qualifying mileage on or after July 1;
• update the medical mileage rate to 23.5 cents for qualifying mileage on or after July 1; and
• preserve the original 72.5-cent and 20.5-cent rates for applicable mileage before July 1.

The IRS maintains a table of current and historical rates on its Standard Mileage Rates page.

A midyear change is unusual, but not unprecedented. The IRS made a similar midyear adjustment in 2022. For compliance files, the date the mileage occurred now matters again.