The tax collection agency noted that the change “results from recent increases in the price of fuel<\/a>” and will allow for larger mileage deductions for business, medical and moving expense purposes.<\/p>\n Under the revision, the standard mileage deduction rate for business will increase to 76 cents per mile, up from 72.5 cents a mile.<\/p>\n Deductions for medical and moving purposes will also rise to 23.5 cents per mile, rising from the previous rate of 20.5 cents.<\/p>\n WHITE HOUSE, GAS STATIONS POINT FINGERS OVER STUBBORN PRICES WHILE LOCATIONS THAT SLASHED PRICES SEE BOOM<\/a><\/p>\n Gas prices surged this spring and early summer due to the Iran war. (Ariana Drehsler\/Bloomberg via Getty Images)<\/p>\n The IRS’ changes to the mileage deduction are effective starting this month, retroactive to July 1, 2026.<\/p>\n The Journal of Accountancy noted<\/a> that the IRS’ revision is the first midyear adjustment of the standard mileage rate since 2022.<\/p>\n Gas prices surged following the outbreak of the Iran war<\/a>, which disrupted the flow of oil from the Middle East through the Strait of Hormuz and has contributed to higher gasoline prices at the pump.<\/p>\n DOJ AND FTC PRESS STATES TO TARGET ANY ILLEGAL ACTIVITY CONTRIBUTING TO HIGH GAS PRICES<\/a><\/p>\n The IRS increased the mileage deduction rate for businesses, medical transport and moving expenses. (J. David Ake\/Getty Images)<\/p>\n Data from AAA shows that the national average cost of a gallon of gasoline was $3.943 as of Thursday. That’s up from $3.16 a gallon a year ago, which represents an increase of 24.7% over the past year.<\/p>\n There has been some relief for drivers in recent weeks, as the average price of gas is down from $4.044 a gallon a month ago.<\/p>\n Gas prices have been a major factor in inflation<\/a> rising this year, with the latest consumer price index (CPI) data showing gas prices are up 26.7% compared with a year ago.<\/p>\n BESSENT WARNS GAS STATIONS ‘WE’RE WATCHING’ AS TRUMP DEMANDS IMMEDIATE PRICE CUTS<\/a><\/p>\n Gas prices are up nearly 25% from a year ago, AAA data shows. (David Paul Morris\/Bloomberg)<\/p>\n That rise is despite CPI inflation data showing a 9.7% decline in gas prices in the month of June as energy flows through the Strait of Hormuz<\/a> picked up, but further declines will be needed to offset the large increases seen in the first few months of the conflict.<\/p>\n Headline CPI was up 3.5% in June, well above the Federal Reserve’s<\/a> target rate of 2%, which has cast doubt on the ability of the central bank to cut interest rates this year if inflation remains persistently above target.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/gas-station-car-fuel-prices-01.jpg\")
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