Following Warnock Effort, IRS Increases Mileage Reimbursement Rate

Last month, Senator Reverend Warnock urged the Internal Revenue Service to increase the standard mileage reimbursement rate and give a bigger tax deduction to Georgia's gig workers and independent contractors

This adjustment benefits millions of independent contractors and gig workers who often drive thousands of miles a year for work

The average gas price in Georgia is $3.77 a gallon, largely resulting from President Trump's Iran War

Washington, D.C. - U.S. Senator Reverend Raphael Warnock (D-GA) secured a mid-year adjustment to the 2026 optional standard business mileage reimbursement rate after pressuring U.S. Department of the Treasury Secretary Scott Bessent and Internal Revenue Service (IRS) Chief Executive Officer Frank Bisignano last month. The Senator made the request after hearing directly from Georgia workers suffocated by the high price of gas.

"I'm pleased that my efforts will provide relief to the millions of Americans who've been squeezed by the surge in gas prices," said Senator Reverend Warnock. "I will continue to focus on making the livelihoods of hardworking Georgians a little better. If the President wants to fix the problems at the pump, he should end this illegal war with Iran"

In a July 13 bulletin, the IRS announced that the standard mileage rate will increase by 3.5 cents per mile to 76 cents for the optional mileage rate for automobiles driven for business. The new rates will apply on or after July 1, 2026, and will be reflected on 2026 federal income tax returns filed next year.

The price of gas has risen exponentially since President Trump began the war in Iran just over 140 days ago. In January 2026, when the current mileage reimbursement was set, the average retail cost of gasoline nationally was $2.93 a gallon. By May 2026, the cost rose to $4.60 per gallon, placing a significant burden on small business owners and workers.

The IRS is authorized to set the standard business mileage rate every year. In years past, the IRS has made mid-year adjustments to the mileage rate, including in 2005, 2008, and 2011, when higher business, medical, and moving rates were applied mid-year "in recognition of recent gasoline price increases." In 2022, the IRS made a mid-year adjustment to mileage rates due to "recent increases in the cost of fuel."

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