Second-half 2026 SIFL rates rose roughly 8 per cent from January.
NBAA posted the new schedule on 17 August 2026. The Standard Industry Fare Level applies to flights taken from 1 July through 31 December 2026. Employers use the rates to value non-business flights on employer-provided aircraft. The result is imputed income to the employee-passenger under the IRS aircraft valuation formula in Treasury Regulation Section 1.61-21(g).
The terminal charge rises to $58.95, from $54.48 in the first half. The mileage rate for the first 500 miles rises to 32.25 cents, from 29.80 cents. The 501-to-1,500-mile band rises to 24.59 cents, from 22.72 cents. Flights beyond 1,500 miles are valued at 23.64 cents per mile, up from 21.84 cents. Each of the four rates is 8.2 per cent higher than the first-half schedule.
The valuation formula multiplies the mileage-and-terminal figure by a factor that varies with aircraft weight class and whether the passenger is a control employee. The factor is highest for control employees on the largest aircraft, producing much larger imputed income for a senior executive on a heavy jet than for a rank-and-file passenger on the same flight.
The Department of Transportation calculates SIFL semi-annually from air-carrier cost data submitted through Form 41. The IRS then publishes the rates for tax use. NBAA has advocated for continued flexibility on rate transitions, and the IRS has previously issued relief allowing employers to use prior-period rates in some circumstances.
Business-purpose flights remain outside the SIFL calculation. Owners of company-provided aircraft should update non-business-use logs and payroll for the second-half period.
Source: NBAA, 17 August 2026; Treasury Regulation § 1.61-21(g).