The Internal Revenue Service (IRS) increased the optional standard mileage rate for business travel to 76 cents per mile for July 1 through December 31, 2026, up from 72.5 cents during the first half of the year. The midyear adjustment reflects recent increases in fuel prices, according to IRS Announcement 2026-11.

For home care agencies whose employees use personal vehicles to travel between patient visits, the increase provides an opportunity to review mileage reimbursement policies, expense reporting systems, and travel budgets.

The IRS lists the following rates for 2026:

• Business travel: 76 cents per mile, up from 72.5 cents for January 1-June 30
• Medical travel and eligible moving expenses: 23.5 cents per mile, up from 20.5 cents for January 1-June 30
• Charitable travel: 14 cents per mile (unchanged)

View the IRS standard mileage rate table for details.

The business rate is an optional federal tax benchmark; the IRS announcement does not itself require employers to reimburse employees at that rate. Agencies should review their established policies and applicable obligations when determining whether an adjustment is needed.

For providers that reimburse at the IRS business rate, the increase amounts to an additional $35 for every 1,000 eligible miles. An agency reimbursing 10,000 eligible miles per month would spend an additional $350 monthly compared with the first-half rate.

Providers using the IRS rate should take the following steps:

• Check reimbursement settings. Confirm that expense reporting and payroll systems reflect the applicable rate and effective date.
• Review mileage submitted since July 1. Determine whether adjustments are needed under the agency’s reimbursement policy.
• Keep the two periods separate. The higher rate does not apply to travel expenses incurred before July 1, even if reimbursement occurs later.
• Communicate with staff. Explain the agency’s reimbursement rate, eligible travel, and documentation requirements.
• Update travel budgets. Use actual mileage patterns to estimate the impact on operating expenses.

Accurate mileage records remain essential. The IRS requires records supporting business vehicle expenses, so agencies should reinforce consistent documentation of travel dates, mileage, destinations, and business purpose. Additional guidance is available in IRS Topic No. 510, Business Use of Car.