If you use your personal vehicle for business, there’s good news. The IRS has announced an increase in the standard mileage reimbursement rate from 72.5 cents to 76 cents per mile, effective July 1, 2026.

At first glance, a 3.5-cent increase may not seem significant. However, when you look at the percentage increase, it’s nearly 5%, which can make a noticeable difference for business owners and self-employed individuals who drive frequently for work.

The IRS mileage rate is designed to cover many of the costs associated with operating your vehicle for business purposes, including fuel, maintenance, repairs, tires, insurance, and depreciation. Rather than tracking every individual vehicle expense, many taxpayers find the standard mileage rate to be a simple and effective way to calculate their business vehicle deduction.

Whether you own a small business, operate as a sole proprietor, or are reimbursing employees for business travel, it’s important to begin using the 76-cent rate for all qualifying business miles driven on or after July 1, 2026.

Keeping an accurate mileage log throughout the year can help maximize your tax deductions and ensure you’re taking advantage of every dollar the IRS allows.

If you have questions about mileage deductions, tax planning, or other ways to reduce your tax liability, the team at Eger CPA is here to help. Our proactive approach helps business owners make informed financial decisions all year long—not just during tax season.

Need help with your business taxes or accounting? Contact Eger CPA today to learn how we can help your business grow.