The IRS mileage rate went up on July 1, 2026
Last updated September 23, 2026. Figures read from the tax authorities' own pages — sources at the bottom. Not tax advice.
For the first half of 2026 the IRS business rate was 72.5¢ per mile. From July 1 it is 76¢ — a mid-year change, which is unusual and easy to miss. If your mileage log prices the whole year at one rate, every business mile you drove since July is worth 3.5¢ less than it should be.
What that's worth
15,000 business miles driven July–December:
15,000 × $0.76 = $11,400 · at the old rate, 15,000 × $0.725 = $10,875
$525 more deduction — on the same miles.
The 2026 rates, with their effective dates
| Where | Period | Business rate | Notes |
|---|---|---|---|
| United States (IRS) | Jan 1 – Jun 30, 2026 | 72.5¢ / mile | Medical & military moving 20.5¢; charity 14¢ |
| Jul 1 – Dec 31, 2026 | 76¢ / mile | Medical & military moving 23.5¢; charity still 14¢ | |
| Canada (CRA) | Calendar 2026 | 73¢ / km, then 67¢ | Tier changes after the first 5,000 km. Territories: 77¢ then 71¢ |
| United Kingdom (HMRC) | To Apr 5, 2026 | 45p / mile | 25p above 10,000 miles |
| From Apr 6, 2026 | 55p / mile | First rise since 2011; still 25p above 10,000 miles | |
| Australia (ATO) | To Jun 30, 2026 | 88c / km | Cents-per-kilometre method, capped at 5,000 km |
| From Jul 1, 2026 | 91c / km | 2026–27 income year; same 5,000 km cap |
How to tell whether your log is right
Open your mileage export and look at two trips: one from May, one from August. If both were valued at the same rate per mile, the log is using a single rate for the year — and your second-half deduction is understated. The same trap runs the other way in the UK and Australia, where a log that applies the new rate to the whole year overstates the early months, which is the direction that attracts questions.
What Mile-Shift does
Each trip is priced at the rate that applied on the day you drove it. A May mile is 72.5¢, an August mile is 76¢, and the CSV and PDF exports name each window so your accountant can see which rate produced which figure. Canada's two-tier rate, the UK's 10,000-mile threshold and Australia's 5,000 km cap are each counted across the year, not restarted per export.
Mile-Shift is a logging tool, not a tax adviser. Rates are transcribed from the authorities' own publications and shown with their dates so you can check them.
Sources
Let the app keep the rate straight.
Mile-Shift logs your drives automatically, prices each one at the rate in force that day, and exports a log your accountant can read. 30 days free, no account — then $1.99/month.
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