IRS Raises Standard Mileage Rates Mid-Year: What Employers Need to Know

For the first time since 2022, the IRS has issued a mid-year adjustment to its standard mileage rates, and the split-rate structure it creates for 2026 is more complex than it appears. If your business reimburses employees for mileage, the IRS just created a compliance task you cannot afford to overlook and getting the details wrong could mean over- or under-reimbursing employees, violating accountable plan rules, and creating unexpected tax exposure for both your business and your workers.

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