Gavel & Glass Briefing - Mid-Year Shift: IRS Increases Standard Mileage Rate for the Remainder of 2026
For association executives, chamber leaders, and volunteer boards, managing travel expenses is a routine part of operations. However, due to recent increases in the price of fuel, the Internal Revenue Service has issued a mid-year adjustment to the standard mileage rates.
Earlier this week, the IRS released Announcement 2026-11, which modifies the rates for the remainder of the year. Here is what your organization needs to know to keep its reimbursement policies compliant and your operational infrastructure up to date.
The Revised 2026 Mileage Rates
Effective for transportation expenses paid or incurred on or after July 1, 2026, the new optional standard mileage rates are as follows:
Business Travel: 76 cents per mile.
Medical and Moving: 23.5 cents per mile.
Charitable Work: 14 cents per mile. (Note that this rate is fixed under § 170(i) of the Internal Revenue Code and remains unchanged).
These revised rates apply specifically to mileage allowances that are paid to an employee on or after July 1, 2026, for transportation expenses incurred on or after that same date. For any deductible transportation expenses incurred before July 1, 2026, the previous rates established in Notice 2026-10 will continue to apply.
Action Steps for Your Organization
While a mid-year rate adjustment is not unprecedented, it does require immediate administrative action to ensure your organization is reimbursing staff and volunteers accurately. We recommend taking the following steps:
Update Expense Forms: Immediately revise your organization’s standard expense reimbursement forms or update your digital expense management software to reflect the new 76 cents per mile business rate.
Notify Your Team: Send a brief internal communication to your staff and volunteer board members outlining the change. Ensure they understand that the new rate only applies to travel occurring on or after July 1, 2026.
Audit Pending Reimbursements: Double-check any expense reports submitted in early July to ensure the correct rate is applied based on the actual date of travel, separating June travel from July travel.
Taking a few minutes to update your administrative infrastructure now will prevent accounting headaches and ensure your team is properly reimbursed for their organizational travel.
Disclaimer: The information contained in this article is provided for educational and informational purposes only and should not be construed as legal advice on any subject matter. No recipients of content from this article, clients or otherwise, should act or refrain from acting on the basis of any content included in the article without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state.
