California WC Medical Mileage Rate to Increase to 76 Cents/Mile For Travel o/a 7/1/26
July 23, 2026
On July 13, the IRS issued Bulletin (https://www.irs.gov/pub/irs-irbs/irb26-29.pdf) that on page 49 announced that the standard mileage rate for business miles increased from 72.5 cents per mile to 76 cents per mile effective July 1, 2026. As a result, the amount payable to California injured workers for travel related to medical treatment or evaluation of injuries also will increase to the new rate. Workers’ compensation claims administrators should apply the new rate for travel on or after July 1, 2026, regardless of the date of injury, but should continue to pay the current rate of 72.5 cents per mile for travel that occurred from January 1 through June 30, 2026.
California workers’ comp medical mileage requirements [LC §4600(e)(2)] work in conjunction with Govt Code §19820 and Department of Personnel Administration (DPA) regulations. Claims administrators are required to reimburse mileage at the rate adopted by the DPA Director for non-represented (excluded) state employees, which is tied to the IRS published mileage rate.
Annual adjustments to standard mileage rate for business use typically take place at the beginning of each calendar year and are based on an annual study of the fixed and variable costs of operating an automobile, which include the cost of gasoline and depreciation. Despite recent reductions in gasoline prices in California and the U.S., apparently those reductions either did not occur prior to the calculation of the latest increase or failed to offset the increases that occurred earlier this year.
To alert the community, the Institute will be issuing a Bulletin and a news release on the new rate. The DWC alerted the Institute about this increase and plans to issue a Newsline, which will be posted at www.dir.ca.gov/dwc/dwc_newsline.html. The mileage rate has been adjusted multiple times over the past decade, so the DWC also has posted downloadable mileage-expense forms in English and Spanish that show applicable rates by travel date under “Medical Forms” on its Forms page (click here).
Given the lack of notice, the Institute recommends you alert your claims staff and system programmers immediately that the mileage rate for medical travel on or after July 1, 2026 increased to 76 cents per mile.
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