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IRS raises mileage rate midyear. Here's who benefits in 2026

The IRS has implemented a mid-year increase to the standard mileage deduction rate for business use of vehicles.

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The brief

The Internal Revenue Service is raising the standard mileage rate for the second half of 2026. This adjustment sets the rate at 76 cents per mile for business use of personal vehicles.

Coverage from outlets including Fox Business, Forbes, and the Journal of Accountancy emphasizes that the change is a response to inflation and rising fuel prices. Reports from Morningstar and Littler Mendelson P.C. highlight the mid-year timing of this adjustment.

Future developments will focus on the practical application of the new rate for tax filers. Coverage does not yet specify the long-term impact on annual tax filings for those who previously used lower rates.

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Quick answers

What is the new standard mileage rate?

The new standard mileage rate for business use is 76 cents per mile.

When does the new rate take effect?

The rate applies to the second half of 2026.

Why was the rate increased?

The increase follows reports of inflation and a surge in fuel prices.

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