As a result of rising fuel costs, the IRS has taken the unusual step of increasing the 2026 standard mileage rate mid-year. Effective January 1, 2026, the rate was 72.5¢ per mile driven for business travel. Effective July 1, 2026, the new rate for the balance of 2026 is 76¢ per mile driven for business travel, an increase of 4.5¢ per mile. Reimbursement at the IRS Standard Mileage Rate is presumed by law to constitute payment in full for the business use of an employee's personal vehicle (including fuel, insurance, maintenance, repairs, etc.). Therefore, employers are advised to always reimburse employees at this rate (or more, but not less) for all business-related mileage driven in the employee's personal vehicle. Reprinted with permission from Scott & Whitehead. |
