The Internal Revenue Service recently announced a mid-year increase in standard mileage rates. The allowable rate for business vehicle use after July 1, 2026, is now 76 cents per mile. The agency cited increased fuel prices as the catalyst for this change, which is a 3.5-cent increase from the mileage rate set in January.  

The standard rate volunteers may deduct for serving charitable organizations remains 14 cents per mile. While the IRS re-calculates the business rate (usually annually) using a study of automobile operating costs, the charitable rate has been fixed in statute for nearly three decades. Legislation, such as the bipartisan Volunteer Driver Tax Appreciation Act led by Rep. Pete Stauber (R-Minn.) and Sen. Amy Klobuchar (D-Minn.), would largely align the charitable and business mileage rates. However, Congress has not yet taken action on these bills. 

For tips on applying the business and charitable mileage rates in your ministry—and practical pointers on a host of other tax matters—please explore ECFA’s 2026 Church & Nonprofit Tax & Financial Guide.