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The 72.5 Cent Mile: New 2026 IRS Rates You Must Use Today

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It is April 13, 2026. If you are still using the old 2025 mileage rates to calculate your LLC’s travel deductions, you are literally leaving money on the table. The IRS has officially increased the standard mileage rate to a record high, and for those filing their 2026 estimates or finalizing 2025 records tonight, this small change can mean an extra $500–$1,000 in your pocket.

The 2026 Mileage Update

The IRS has set the 2026 business standard mileage rate at $0.725 per mile.

  • The Jump: That is a 2.5-cent increase from the 70-cent rate in 2025.
  • Why it matters: If you drove 15,000 miles for your LLC this year, your deduction just jumped to $10,875.
  • The EV Bonus: In 2026, this rate applies equally to electric, hybrid, gasoline, and diesel vehicles.

The “Death” of the Office Snack Deduction

Here is the bad news you need to hear before you finalize your books tonight: Office snacks are officially 0% deductible in 2026.

  • The Rule Change: Under the expiration of the TCJA provisions, meals provided for the “convenience of the employer” (breakroom coffee, snacks, late-night overtime meals) have dropped from 50% to zero.
  • What’s Left? Business meals with clients or prospects remain 50% deductible, provided you are present and business is discussed. If you labeled your “Target snack run” as a 50% deduction, fix it tonight before the AI auditor flags it.

3 Seconds to Save Your Audit

If you are claiming a high mileage deduction, the 2026 IRS AI looks for one specific thing: The Digital Log.

  1. Stop using paper: In 2026, a handwritten log is considered “low-grade evidence.”
  2. Use GPS-Backed Data: Apps like MileIQ or QuickBooks Self-Employed are now the gold standard.
  3. The OBBBA Shield: If you bought an American-made EV for your business after Dec 31, 2024, remember you can now deduct up to $10,000 in loan interest annually under the new OBBBA laws—don’t miss this on your 1040!

The Section 179 “Monster” Deduction

If you bought a heavy SUV (over 6,000 lbs) for your LLC, the 2026 limit has been raised to $2.56 Million. If your business is showing too much profit tonight, “Bonus Depreciation” is still at 100% for 2026, allowing you to wipe out your entire tax bill with a single equipment purchase.

In 2026, the IRS gives with one hand (mileage) and takes with the other (snacks). Know the difference tonight.

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