# IRS increases business mileage deduction rate as fuel prices rise

The IRS has raised the standard business mileage deduction rate to account for higher fuel costs. The new rate, effective immediately, allows taxpayers to deduct more for business-related driving expenses. This change helps offset the financial burden on businesses and self-employed individuals facing surging gasoline prices.

**Importance:** 3/5

## Sources

### Business
- [Fox News Business](https://www.foxbusiness.com/economy/irs-raises-business-mileage-deduction-rate-amid-fuel-price-surge) — Thu, 16 Jul 2026 20:22:50 GMT
- [The Guardian Biz](https://www.theguardian.com/business/2026/jul/19/us-interest-rates-businesses) — Sun, 19 Jul 2026 14:00:28 GMT

### World
- [The Guardian World](https://www.theguardian.com/australia-news/2026/jul/22/rba-interest-rate-rise-likely-us-iran-war-markets-forecast) — Tue, 21 Jul 2026 15:00:51 GMT