The IRS has raised the mileage rate tax deduction available to vehicles used for business purposes for the second half of 2026 amid a rise in fuel prices.
In 2026, the standard mileage rate for the use of a car, van, pickup truck, or panel truck was set at 72.5 cents per mile, up from 2.5 cents in the previous year. This has now been raised by 3.5 cents to 76 cents, effective from July 1, the IRS said in a July 13 bulletin.
A company using a vehicle for business purposes can deduct some of its operating costs from taxable income.
This amount is calculated by multiplying the eligible miles by the standard mileage rate set by the IRS. …