As of January 1, 2026, the IRS has increased the standard mileage reimbursement rate for business travel to 72.5 cents per mile. This update has immediate implications for employers who reimburse employees for work‑related driving.
At Koegle Law Group, we help business owners stay aligned with evolving labor and tax requirements through proactive policy review and compliance‑focused planning.
Mileage reimbursement rates directly affect payroll accuracy, expense reporting, and wage‑and‑hour compliance. Employers should take this opportunity to review internal reimbursement policies, confirm proper documentation practices, and ensure managers understand current requirements.
✅ Apply the updated 2026 IRS mileage rate
✅ Review and update reimbursement policies
✅ Reinforce documentation and recordkeeping practices
✅ Reduce compliance and audit risk
Start 2026 with clarity and confidence.
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This article was originally published by Koegle Law Group, proudly serving businesses in Santa Clarita and beyond. This communication may be considered advertising material under the rules of professional conduct governing lawyers in California.