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One Digital HR Corner | Law Alert: Federal: Midyear 2026 Mileage Reimbursement Rate Increase

Due to rising fuel prices, the IRS standard mileage rate was recently increased to 76 cents per mile driven for business purposes (up from 72.5 cents). While the change was announced on July 13, 2026, it’s retroactively effective to July 1, 2026. Use of this rate is optional for private employers, but it’s widely accepted as an easy and standard reimbursement rate for employees who use their personal vehicles for work.

Action Item

If your organization uses the IRS rate to calculate mileage reimbursement, update your systems to account for this change.

As always, if you have any additional questions or need additional information associated with these topics or other HR related topics, please don’t hesitate to reach out to Will Peterson at OneDigital.