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IRS raises the 2026 business mileage rate to 76 cents from July 1
Citing higher fuel prices, the IRS raised the business standard mileage rate to 76 cents a mile for driving on or after July 1, 2026 (Announcement 2026-11, in the July 13, 2026 Internal Revenue Bulletin). Miles driven before July 1 stay at 72.5 cents, so a 2026 mileage log needs the two halves totaled separately. Medical and military moving miles rose to 23.5 cents, and charity miles stay at 14 cents. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A deduction rate, not a fee. 1,000 business miles driven July-December 2026 give a $760 deduction, $35 more than at 72.5 cents.
Source: IRS Announcement 2026-11 (IRB 2026-29) · verified
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1099-NEC and 1099-MISC threshold rises to $2,000 (was $600)
If you pay a helper, virtual assistant or other independent contractor in 2026, you need to file a Form 1099-NEC only once that person's payments reach $2,000 for the year, up from $600. The same $2,000 floor now applies to rent you pay in your business (Form 1099-MISC) and to backup withholding on these payments, and it will be indexed for inflation from 2027. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A filing rule, not a fee. Example: a packer paid $1,500 during 2026 needs no 1099-NEC, where the old $600 rule required one. Payments made in 2025 still used $600.
Source: IRS Publication 1099 (2026) · verified
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2026 business mileage rate: 72.5 cents a mile (Jan. 1-June 30)
The IRS set the standard mileage rate for business use of a car, van, pickup or panel truck at 72.5 cents a mile from Jan. 1, 2026, up 2.5 cents from 70 cents in 2025. It applies to gas, diesel, hybrid and fully electric vehicles. A mid-year change raised the rate to 76 cents for miles driven from July 1, 2026, so 72.5 cents covers January through June. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A deduction rate, not a fee. 100 business miles driven January-June 2026 give a $72.50 deduction, against $70.00 at the 2025 rate.
Source: IRS IR-2025-128 (Notice 2026-10) · verified
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New $400 minimum QBI deduction for sellers with at least $1,000 of business income
For tax years beginning after Dec. 31, 2025, the 20% qualified business income (QBI) deduction has a floor. If your QBI from businesses you materially participate in is at least $1,000, the deduction is at least $400. That matters when the regular 20% calculation comes to less than $400, for example with $1,000 to $1,999 of QBI, and both figures are indexed for inflation after 2026. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A deduction floor, not a fee: it lowers taxable income and does not change your net per sale. Example: $1,500 of active QBI gives a 20% deduction of $300, and the minimum raises it to $400.
Source: IRS Rev. Proc. 2025-32 (IR-2025-103) · verified
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1099-K: back to $20,000 and more than 200 transactions
The One, Big, Beautiful Bill retroactively restored the pre-2021 rule: payment apps and marketplaces must send a 1099-K only if your payments for goods or services total over $20,000 in more than 200 transactions. They may still send one for less, and the IRS says you must report all income either way. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A reporting rule, not a fee. Keep your own records of sales, fees and costs regardless of the form.
Source: IRS IR-2025-107 (Fact Sheet 2025-08) · verified
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