IRS quietly raises mileage rates due to inflation
The Internal Revenue Service has increased the optional mileage rate for 2026 for taxpayers to use in calculating the deductible amount for using a car for business, charitable, medical or expense purposes for the rest of the year thanks to inflation, the first time it has increased the mileage rate in the middle of the year since 2022.
Administrative Matters
Instead of issuing a press release, the IRS included another one
The revised mileage rates are 76 cents per mile for business purposes and 23.5 cents per mile for medical and mobility purposes. The mileage limit that applies to the deduction for charitable donations is fixed under Section 170(i) of the Internal Revenue Code at 14 cents per mile, the IRS said.
Before the new guidance, the 2026 rate was 72.5 cents per mile driven for commercial use, up 2.5 cents from 2025; and 20.5 cents per mile driven for medical purposes, less than half a percent by 2025.
Accountants will need to rely on new guidance when deducting their clients’ and companies’ expenses, as oil prices rise as the Iran war heats up this week after a temporary easing of the ceasefire, and as
The revised standard rate applies to transportation expenses paid or incurred for business, medical or expense purposes on or after July 1, 2026, and allows examples that are paid both (1) to an employee on or after July 1, 2026, and (2) for transportation expenses paid or incurred by an employee on or after July 1, 1.
The IRS notes that the standard mileage rate in Notice 2026-10 continues to apply to transportation expenses paid or incurred for business, health or mobility purposes before July 1, 2026, and to allow examples paid to an employee before July 1, 2026, or in respect of transportation expenses paid or incurred by an employee before July 2. 2026-10 he was working.
