Level 15

2026 Standard Mileage Rate

Forum|Forum|3 months ago
March 9, 2026
3 replies
15 views

In January, IRS announced this year’s standard mileage rate would be 72.5 cents per mile. That was when the average retail price of gasoline was $2.93 per gallon. They also lowered the medical mileage rate from 21 cents to 20.5 cents.

One problem with having “one rate fits all, for the entire year” is that even if oil prices don’t change, the costs range widely across the country. The average price on the Gulf Coast last month was $2.40; on the West Coast, it was $3.68.

I filled my tank on March 1 for $3.50 a gallon. Yesterday, the same station had raised its price to $4.15. At 25 mpg, that’s 2.6 cents more per mile. Yet the 72.5 cents per mile stays the same. Not a problem for my client the DoorDash driver; he delivers with an electric vehicle.

Could IRS announce the rate at the end of the year, instead of the beginning? Not if employers keep using it to figure reimbursement for employee travel. Or could it be changed to a “dry” rate – the allowance for everything but gas, and you would need receipts for that?

Tax Talk

S

strongsilence

Level 10

Interesting, good idea. But I'm not sure if it is practical You're suggesting more government/EIA data/Runzheimer/Motus collection and processing which means more employees, at a time when the current government doesn't care at all. Or do you think these current employees have the capacity for this effort? What is important?

sjrcpa

Level 15

There have been a couple of years when they made a midyear change in the mileage rate. Maybe they will for 2026.

The more I know the more I don’t know.

IRonMaN

Level 15

"There have been a couple of years when they made a midyear change in the mileage rate. Maybe they will for 2026."

But wouldn't that be an admission that costs went up, even though we have a leader that keeps telling us everything is cheaper? Besides, I saw a governmental official admit on TV the other day that the cost of gas was up, but it will only be for a few weeks. So I'm sure by the time we crawl out of our tax season bunkers late in April gas will be so cheap that we will forget even talking about the IRS mileage rate. 😬

Slava Ukraini!

K

Karl

Intuit Community Champion

If it's announced at the end of the year, employers won't have a rate to reimburse mileage to their employees along the way.

*If this (or another answer/reply) solves your problem, please click "Accept as Solution" to get this post out of the "Unanswered" queue of posts.*

BobKammanAuthor

Level 15

Yes, the number is just as important to employers as it is to taxpayers. And which employer in the country pays for more mileage than any others? Probably the US government, which therefore has two reasons to keep the amount low: Less compensation to employees, more tax revenue from drivers.

If the government can make quarterly adjustments to the interest rate it pays and charges on tax refunds and debts, why can't it make quarterly adjustments to the standard mileage rate? People are supposed to be keeping a log anyway, right? It's a lot easier now than it was back when you couldn't carry a computer in your pocket.

But I think the whole idea of "one size fits all" is one whose time has passed. Some people have to use vehicles that get fewer mpg. Others don't buy gas at all, their cost depends on their source of electricity.

Meanwhile, here's an interesting anecdote. My clients bought a Nissan Rogue, in December. Did you know these vehicles have only three cylinders? But 201 horsepower. Anyway, most of them are assembled in Tennessee. But this one has a VIN that starts with a K, indicating it came from one of Nissan's Korean factories. (My vehicle was made by a Korean company, but its VIN indicates that it was assembled in Alabama.)

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