Small Business Taxes & ManagementTM--Copyright 2026, A/N Group, Inc.
Introduction
Announcement (IRB 2026-29) informs taxpayers that the IRS is modifying Notice 2026-10 (IRB 2026-4), by revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. This modification results from recent increases in the price of fuel. The new rate for business will be 76 cents per mile, up from 72.5 cents, and 23.5 cents per mile for medical and moving (up from 20.5). The new rates will take effect for deductible transportation expenses paid or incurred on or after July 1, 2026.
Notes. Moving expenses are generally no longer deductible. Exceptions include for reserve members of the Armed Forces, state or local government officials paid in whole or in part on a fee basis, certain performing artists and certain educators are entitled to deduct unreimbursed employee travel expenses as an adjustment to total income.
The mileage rate for charitable work is determined by law and is not adjusted for changes in the cost of operating a vehicle.
Copyright 2026 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 07/12/26