Another mid-year mileage allowance increase

Maybe you remember (I certainly do because it was a pain for accounting purposes) that for 2022, there were two rates for the business mileage allowance. Pre 7/1/2022 it was 58.5 cents per mile, and post 7/1/2022 it was 62.5 cents per mile. I was so happy that they went back to one-rate-per-year since then.

Well, here we go again...with little fanfare, the IRS has "announced" that we have two rates again for 2026. Before 7/1 it was 72.5 cents per mile, and after 7/1 it is 76 cents per mile. Did you even know that?

I'm semi-amused thinking about the reason this tax change was very quietly implemented, but I'm guessing it is because the mileage allowance is tied, in part, to the costs of driving. This may be a sheepish admission that gas prices aren't the best these days.

So be sure to keep those mileage logs carefully, with dates and everything (which you should be doing regardless)...but this will be extra important for 2026.