It is hard to believe we are halfway through the year already. We wanted to push out some information on several things that are coming up over the next couple of months to keep you in the know. These include Missouri Amendment 5, a mid-year mileage rate change, and QuickBooks price increases.
Check out our 7 minute video blog In the Know with OCFO July 2026 or the summary items below.
Mileage Rate Change
The IRS has increased the standard mileage rate, effective 7/1/26. The mileage rate is increasing from 72.5 cents per mile to 76 cents per mile for business purposes.
Because the rate change is occurring in the middle of the year, businesses will need to track the January - June mileage separately from the July - December mileage, if using the IRS standard mileage rate.
It is also important to note the rate increase for any businesses that are reimbursing their employees for business miles driven.
QuickBooks Price Increases
QuickBooks is implementing planned pricing increases for both their QuickBooks Online subscriptions, as well as their QuickBooks Desktop Pro and Premier renewals.
The QuickBooks Online pricing increases will take effect on 8/3/26, while the QuickBooks Desktop pricing increases are set for 10/1/26.
Missouri Amendment 5
On August 4, 2026, Missouri voters will vote on Amendment 5. This is the proposed repeal of Missouri individual income taxes.
There are some important things to consider when voting on this amendment.
- Income taxes will not disappear immediately. There would be a phaseout over multiple years.
- If the income tax is repealed, the state of Missouri would need to replace the lost revenue somehow.
- The amendment itself does not impose sales tax on additional services, but it does give the legislature additional authority to consider future changes to the Missouri sales tax structure.
- Increasing the sales tax or expanding the sales tax base (i.e. what is subject to sales tax) is one way the state could replace the lost income tax revenue.
Will I pay less tax?
Possibly, but not for sure. While the income tax may be less, you may end up paying more in sales tax.
Will my service business have to collect sales tax?
Possibly, if the taxable sales tax base is expanded with future legislative changes.
*While some taxpayers may ultimately pay less, others could see different taxes, fees, or compliance requirements change as a result.
It is too early to know the full financial impact on any particular business or household.
Our recommendation is to stay informed and avoid making significant financial decisions based on assumptions about future tax policy until those details are established.
Mid-Year Tax Planning
Since we are halfway through the year, now is a great time to look at your business performance. If your business has had a much better (or worse) year than expected, now is the time to do a tax projection instead of waiting until the end of the year. Being able to plan ahead for payments due in April is the goal.
In closing, we love being able to help our clients cut through the jargon and know where they are at, and where they are going. If we can be of assistance to you, don't hesitate to schedule an intro call .
