Mid-Year Tax Changes Include Mileage Rate, Sales Tax
The start of July has brought with it some mid-year tax changes. And as you might expect, there’s good news and bad news.
Mid-Year Tax Changes: The Good News
The IRS has announced that they have raised the standard mileage rate used to figure the deductible expenses for operating a vehicle. For business purposes, the rate is now 76 cents per mile. That’s an increase from 72.5 cents per mile at the start of 2026. For medical and moving purposes, the rate is now 23.5 cents per mile, up from 20.5 cents per mile for each.
The charitable work mileage rate remains unchanged at 14 cents per mile.
The increase in the deduction reflects the rise in gasoline prices. The American Automobile Association (AAA), notes that the average prices of regular gas in the U.S. has increased 38 percent since the beginning of the year.
Mid-Year Tax Changes: The Not-So-Good News
The sales tax rate increased by .1 percent throughout Whatcom County starting July 1, 2026. The increase will raise as much as $7 million slated for law enforcement costs in the county.
The new rates in Whatcom tax districts are:
- Bellingham: 9.2 percent
- Blaine: 9.1 percent
- Everson: 8.9 percent
- Ferndale: 9.1 percent
- Lummi Nation – Bellingham: 9.2 percent
- Lummi Nation – Ferndale: 9.1 percent
- Lummi Nation – Whatcom County Unincorporated Areas: 8.3 percent
- Lummi Nation – Whatcom County Unincorporated PTBA {Public Transportation Benefit Area): 8.9 percent
- Lynden: 9.3 percent
- Nooksack: 8.9 percent
- Sumas: 8.9 percent
- Whatcom County Unincorporated Areas: 8.3 percent
- Whatcom County Unincorporated PTBA: 8.9 percent
Mount Vernon also sees a .1-percent sales tax increase, likewise raising revenue for local law enforcement. The rates in the rest of Skagit County remain unchanged.
Links
The IRS has a page explaining deductions for the business use of a car.
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