IRS Increases 2026 Mileage Rates Due to Rising Fuel Prices
By
The IRS has increased 2026 mileage rates for the second half of the year due to rising fuel prices. Here are the changes that took effect on July 1.
The business standard mileage rate is 76 cents per mile, up from 72.5 cents per mile in effect during the first half of the year.
As to miles driven for medical or moving purposes, the standard rate has risen to 23.5 cents per mile, up from 20.5 cents per mile. The standard rate for moving purposes remains limited to qualified active-duty members of the Armed Forces and certain members of the intelligence community.
These mid-year rate increases are not retroactive. Employers should continue using the previous mileage rates for expenses paid or incurred before July 1.
More info: Announcement 2026-11, IRB 2026-29.
Further Reading
Oklahoma Unemployment Tax Rates & Wage Base Drop Jan. 1
On Jan. 1, 2027, Oklahoma’s unemployment insurance taxable wage base decreases to $24,400 per employee, down from $25,000. Tax rates for experienced employers will range from 0.1% to 5.5%, down from 0.2% to 5.8% in 2026. The new-employer rate remains 1.5%. The Oklahoma Employment Security Commission uses each employer’s benefit wage ratio and the state’s […]
New York Expands Pay Protections for Construction Workers, Effective Dec. 8
Covered construction employers in New York face reporting-pay and shift-cancellation pay obligations under the state’s Construction Reporting Pay Act. As of Dec. 8, 2026, covered employees who report for work at their employer’s request or with its permission must receive at least four hours’ pay, or their regularly scheduled shift if shorter, at their promised […]
Washington Paid Leave Premium Increases Jan. 1
On Jan. 1, 2027, Washington’s Paid Family & Medical Leave premium increases to 1.2%, from 1.13%. Employers will pay 29.3% of the paid leave premium; the employee share is 70.7%. Employers may cover some or all of employees’ share. Generally, employers with fewer than 50 employees don’t need to pay the employer share unless they […]
Year-End Fringe Benefits: Check Payroll’s Accounting Cutoff
With year-end approaching, payroll teams should review whether the IRS’s optional special accounting rule makes sense for certain taxable noncash fringe benefits. The rule lets employers treat benefits provided during November and December (or a shorter period within those months) as paid in the following year. For example, personal use of a company vehicle in […]
DOL Withdraws Guidance Behind 80/20 Rule for Tipped Employees
The Department of Labor recently issued a bulletin withdrawing three opinion letters that led to the 80/20 rule for tipped employees. The rule generally barred employers from claiming the tip credit for time that tipped employees spent on related, non-tip-producing duties beyond 20% of their workweek. Why DOL Acted Now DOL dropped the 80/20 guidance […]
IRS Shuts Down FIRE E-Filing Nov. 19: Apply for IRIS Now
The IRS’s FIRE system will take its last information return at 3 p.m. ET on Nov. 19. Starting with the 2027 filing season, the Information Returns Intake System (IRIS) will replace FIRE for e-filing returns, including 1099s, 1098s and W-2Gs for gambling winnings. Companies filing directly need an IRIS Transmitter Control Code, separate from any […]