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What's New in 2026
Mileage Math
Fuel Prices Drive Up IRS Rate to 76 Cents
On July 13, the Internal Revenue Service increased the optional standard business mileage rate from 72.5 cents to 76 cents per mile, retroactive to July 1, 2026.
The new rate applies to business use of personal vehicles, including gasoline, diesel, hybrid, and fully electric models.
California Labor Code section 2802 requires employers to reimburse employees for necessary business expenses, including required business use of a personal vehicle. While the IRS rate is not mandatory, it remains a simple and reasonable reimbursement method.
Take-Away:
Employers using the IRS standard mileage rate should reimburse at 76 cents per mile for business travel on or after July 1, 2026. They should also review July reimbursements paid at 72.5 cents per mile and issue a 3.5-cent-per-mile adjustment where applicable.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Cindy Bamforth
July 29, 2026
If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.
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