What Happened
The IRS issued Announcement 2026-11, revising the optional standard mileage rates used to compute the deductible costs of operating an automobile for business, medical, or moving expense purposes and to determine the reimbursed amount of those expenses that is deemed substantiated.
What Changed
The revised rates took effect July 1, 2026, and reflect recent increases in the price of fuel. Announcement 2026-11 modifies Notice 2026-10, while all other provisions of Notice 2026-10 remain in effect.
Who Is Impacted
Businesses, employees, self-employed individuals, and taxpayers who use the optional standard mileage rates for business, medical, or moving expense purposes may be affected by the revised rates.
Key Takeaways
Under Announcement 2026-11, the business rate is 76 cents per mile, and the medical and moving rate is 23.5 cents per mile. The mileage rate for the charitable contribution deduction, fixed by statute under Code Section 170(i), remains at 14 cents per mile.
Moving Forward
Taxpayers and businesses should use the updated rates for qualifying mileage incurred on or after July 1, 2026, and ensure reimbursement policies, accounting procedures, and tax planning reflect the mid-year adjustment.
Next Steps
Businesses should review their mileage reimbursement practices and communicate the updated rates to employees or other individuals who submit mileage-based expense claims.
For guidance on how the updated IRS mileage rates may affect your business reimbursement practices or tax planning, contact Martin D. Hauptman at mhauptman@mblawfirm.com or 973-243-7912.