Blog 2026

2026 IRS Business Mileage Rate: Rules, Reimbursement & FAVR

Written by Kirk Smith | Jul 2, 2026 7:23:50 AM

What does the 2026 rate increase mean for employers?

The business mileage rate increased by 2.5 cents per mile from 2025. That may look small, but it adds up quickly for companies with high-mileage drivers.

However, because the IRS mileage rate is not based on real-time cost data, you should anticipate that it will be imprecise.