IRS Increases Mileage Rate for July through December 2026

The Internal Revenue Service (IRS) announced that, effective July 1, 2026, it would increase the business travel mileage rate to 76 cents per mile.  Employers should ensure that they are paying the proper mileage rate for the period at issue, particularly in locations such as California that require expense reimbursements.

California Labor Code section 2802 requires employers to reimburse employees for necessary expenses incurred in performing their job duties, which may include an employee’s use of their personal vehicle for work purposes, such as for work-related travel or driving between work sites.

The California Labor Commissioner has opined that the use of the IRS mileage rate will generally satisfy an employer’s obligation to reimburse employees for the expenses incurred in the use of an employee’s car for work purposes, in the absence of evidence to the contrary.

IRS:
Internal Revenue Bulletin (PDF)

Littler:
IRS Increases Standard Mileage Rate for Second Half of 2026 to 76 Cents per Mile

Jackson Lewis:
California Employers Take Note of the Recent IRS Mileage Rate Increase