The Internal Revenue Service has raised the optional 2026 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes for the remainder of the year thanks to inflation — the first time it’s raised the mileage rate in the middle of the year since 2022.
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Instead of issuing a press release, the IRS included an
The revised standard mileage rates are 76 cents per mile for business purposes and 23.5 cents per mile for medical and moving purposes. The mileage rate that applies to the deduction for charitable contributions is fixed under Section 170(i) of the Internal Revenue Code at 14 cents per mile, the IRS noted.
Before the new guidance, the rates for 2026 had been 72.5 cents per mile driven for business use, up 2.5 cents from 2025; and 20.5 cents per mile driven for medical purposes, down a half cent from 2025.
Accountants will need to rely on the latest guidance when deducting expenses for their clients and companies, while the costs of gasoline are again rising as the war in Iran heats up this week after temporarily declining during the uncertain ceasefire, and as
The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical or moving expense purposes on or after July 1, 2026, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2026, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2026.
The IRS noted that the standard mileage rates in Notice 2026-10 continue to apply to deductible transportation expenses paid or incurred for business, medical or moving expense purposes before July 1, 2026, and to mileage allowances paid to an employee before July 1, 2026, or with respect to transportation expenses paid or incurred by the employee before July 1, 2026. All of the other provisions of Notice 2026-10 remain in effect.
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