IRS Increases Standard Mileage Rates for Business Vehicle Use

As a result of increased fuel costs, the IRS issued Announcement 2026-11 which updates 2026 standard mileage rates, including an increased rate for business vehicle use. Effective July 1, 2026, the business mileage rate increased to 76 cents per mile (up from 72.5 cents per mile).  The standard mileage rate is an optional method businesses and self-employed individuals can use to deduct vehicle operating costs instead of tracking actual expenses. The simplicity of this approach makes it popular with many taxpayers.  Oddly enough, the mileage rate for charitable vehicle use remained the same (14 cents per mile).