The Division of Workers’ Compensation (DWC) has announced that the mileage reimbursement rate for medical and medical-legal travel expenses has increased by 3.5 cents to 76 cents per mile, effective July 1, 2026.

California Labor Code §4600(e)(2), in conjunction with Government Code §19820 and DPA regulations, requires claims administrators to reimburse injured workers for medical mileage at the rate adopted by the Department of Personnel Administration (DPA) for non-represented (excluded) state employees, which is tied to the IRS published mileage rate.

The IRS normally adjusts the standard mileage rate each fall for the next calendar year based on an annual study of the fixed and variable costs of operating an automobile, but the IRS Commissioner just announced that in recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2026.

The new rate must be paid for travel on or after July 1, 2026, regardless of the date of injury. Labor Code section 4600, Government Code section 19820 and the California Department of Human Resources regulations establish the mileage reimbursement rate for medical and medical-legal travel and tie it to the rate established by the Internal Revenue Service (IRS).

IRS bulletin IR-2026-29, issued July 13, 2026, announced the rate increase. Mid-year mileage rate increases are rare, but are now becoming more common. There was was one in 2011 and another in 2022.

But there have been multiple mileage rate changes with January effective dates over the past decade, so the DWC has downloadable mileage-expense forms that show the applicable rates based on the travel date.

The California Department of Industrial Relations’ Division of Workers’ Compensation monitors the administration of workers’ compensation claims and provides administrative and judicial services to help resolve disputes related to claims for workers’ compensation benefits.