10 August 2026 IRS adjusts some federal mileage rates effective July 1, 2026 The IRS announced that effective July 1, 2026, the business standard mileage rate for use of a car (including vans, pickup trucks and panel trucks) increases from $0.725 to $.76 and the rate for medical and relocation mileage increases from $0.205 to $0.235. Mileage related to charity is set by law and remains at $0.14 per mile. It is important to note that taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses except with limited exceptions for certain federal personnel. Pursuant to the vehicle valuation limit that applies to use of the optional fleet-average and vehicle cents-per-mile valuation methods, the maximum fair market value of a vehicle (including trucks and vans) first made available to employees in calendar year 2026 remands unchanged at $61,700. (Notice 2026-10.)
Document ID: 2026-1707 | ||||||||||||||||
