Georgia gig workers, independent contractors and small business owners who use their personal vehicles for work will be able to claim a larger federal mileage deduction after the IRS announced a mid-year increase to its standard business mileage rate.
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The IRS is raising the optional standard business mileage rate by 3.5 cents per mile, increasing it to 76 cents per mile for business travel beginning July 1, 2026. The new rate will apply to 2026 federal income tax returns filed next year.
The increase comes after U.S. Sen. Raphael Warnock urged the IRS and the U.S. Treasury Department to adjust the reimbursement rate to reflect higher fuel costs.
Warnock said he pushed for the change after hearing from Georgia workers who drive thousands of miles each year for their jobs, including rideshare drivers, delivery drivers, contractors and other self-employed workers.
“I’m pleased that my efforts will provide relief to the millions of Americans who’ve been squeezed by the surge in gas prices,” Warnock said in a statement.
According to Warnock’s office, the average price of gas in Georgia is about $3.77 per gallon, increasing costs for workers who rely on their vehicles to earn a living.
The IRS reviews the standard mileage rate annually but has made mid-year adjustments in the past when fuel prices rose significantly, including in 2005, 2008, 2011 and 2022.
The updated mileage rate takes effect retroactively for business miles driven on or after July 1.
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