Every year, we meet with business owners who tell us the same thing:
“I know I drove for business… I just wish I had kept better records.”
It’s an easy situation to find yourself in. You’re focused on serving customers, managing employees, and keeping your business moving forward. Tracking every business trip often takes a back seat until tax season arrives.
This year, there’s another reason to take a closer look at your mileage records.
Beginning July 1, 2026, the IRS increased the standard business mileage rate from 72.5 cents to 76 cents per mile. While that may sound like a small change, it means business owners now need to account for two different mileage rates during the same tax year.
Quick Answer
Business miles driven from January 1 through June 30, 2026, use the 72.5-cent standard mileage rate. Miles driven July 1 through December 31 use the new 76-cent rate.
Separating those miles now—and keeping good records moving forward—can make tax preparation much easier.
Why This Matters
The updated mileage rate isn’t simply about a few extra cents per mile. It’s an opportunity to review your bookkeeping before the year ends and make sure your records are working for you.
Accurate mileage tracking helps you:
- Support your business deductions
- Review employee reimbursements
- Better understand operating expenses
- Prepare for tax season with confidence
Waiting until next spring to piece together months of travel can be time-consuming and stressful. A little organization today can save hours later.
Is Your Current Tracking System Working?
Whether you use a mileage tracking app, a spreadsheet, accounting software, or even a notebook in your vehicle, consistency is what matters most.
Your mileage records should include:
- The date of the trip
- Where you traveled
- The business purpose
- The number of business miles driven
Most importantly, make sure your records clearly separate mileage before and after July 1, 2026, so you’re using the correct IRS rate.
A Good Time for a Midyear Business Checkup
The mileage rate change is a great reminder to step back and review more than just your vehicle expenses.
Ask yourself:
- Are my bookkeeping records current?
- Are employee reimbursements being documented correctly?
- Is my business prepared for year-end tax planning?
- Are there opportunities to improve my financial processes before tax season arrives?
These are small questions that can make a big difference when it’s time to prepare your tax return.
Good Accounting Is About More Than Taxes
At Ryder & Company, we believe accounting isn’t just about filing tax returns. It’s about helping business owners understand their numbers, make informed decisions, and stay ahead of potential issues before they become bigger problems.
The IRS mileage rate change is simply one reminder that staying organized throughout the year often leads to a smoother tax season and fewer surprises.
We’re Here to Help
Whether you need assistance with bookkeeping, payroll, tax planning, business consulting, or CFO advisory services, our team is here to help you stay organized and prepared.
A quick review of your mileage records today can make tax season much easier tomorrow.
Have questions about the new IRS mileage rate or your business records? Contact Ryder & Company. We’d be happy to help you prepare for a successful year-end.