What Is the IRS Mileage Rate for 2026? (Updated Numbers Explained)
The video alerts employers and payroll professionals that the IRS has revised mileage reimbursement rates effective January 1, 2026. The standard business mileage rate rises to 72.5 cents per mile (up 2.5 cents from 2025), while the medical and moving rate falls to 20.5 cents and the charitable rate remains at 14 cents. These rates apply to all vehicle types—gas, diesel, electric, and hybrid—with no exceptions. Reimbursements at or below the IRS rate stay tax‑free; any amount paid above the standard rate without proper documentation becomes taxable income. The IRS also updated the maximum vehicle‑cost thresholds for fleet or fixed/variable rate plans, requiring adjustments to those reimbursement structures. The speaker outlines three simple action items: review and update the mileage reimbursement policy to the new $0.725 per mile rate, communicate the change to employees, and consult HR or payroll providers to ensure tax compliance. The video ends with a call to like, subscribe, and ask questions, positioning Guru as a resource for navigating these HR and payroll updates.
