What is the IRS mileage rate for 2026?

The IRS standard mileage rate for business use is 72.5 cents per mile in 2026, up 2.5 cents from 2025. The medical and military moving rate is 20.5 cents per mile, and the charitable rate is 14 cents per mile. The rates were announced in IRS notice IR-2025-128 on December 29, 2025 and apply from January 1, 2026.

What is the HMRC mileage rate for 2026/27?

For the 2026/27 tax year, the HMRC approved mileage rate for cars and vans is 55p per mile for the first 10,000 business miles and 25p per mile after that. HMRC announced the increase from 45p on 21 May 2026, backdated to 6 April 2026 — the first change since 2011/12. Motorcycles remain 24p and bicycles 20p per mile.

What is the CRA mileage rate for 2026?

Canada's 2026 automobile allowance rate is 73 cents per kilometre for the first 5,000 business kilometres and 67 cents per kilometre after that. In the Northwest Territories, Yukon and Nunavut, an extra 4 cents applies (77¢ and 71¢). The rates were announced on January 14, 2026, effective January 1, 2026.

What is the ATO cents per kilometre rate for 2025–26?

The ATO cents per kilometre rate is 88 cents per kilometre for the 2025–26 income year (1 July 2025 to 30 June 2026), unchanged from 2024–25. Claims are capped at 5,000 business kilometres per car, a maximum deduction of $4,400.

Official mileage rates for 2026

Q: Does commuting count as business mileage?

No. In all four countries, ordinary commuting between home and a regular workplace is private travel and cannot be claimed or reimbursed tax-free. Business mileage generally means trips to client sites, temporary workplaces, or between work locations.

The current government per-mile and per-kilometre rates for business driving in the United States, United Kingdom, Canada and Australia — checked against the primary source documents, not other blogs.

Last verified: June 9, 2026 · Every figure below links to the official notice it comes from.

United States · IRS2026

72.5¢ / mile

Business rate, from Jan 1, 2026. Medical 20.5¢ · Charity 14¢

United Kingdom · HMRC2026/27

55p / mile

Cars & vans, first 10,000 miles, then 25p. First rise since 2011.

Canada · CRA2026

73¢ / km

First 5,000 km, then 67¢. Territories: 77¢ / 71¢.

Australia · ATO2025–26

88¢ / km

Flat rate, capped at 5,000 km per car ($4,400 max).

All four schemes side by side

The four tax authorities structure their rates differently — a flat rate with no cap (IRS), tiered thresholds (HMRC and CRA), and a flat rate with a hard cap (ATO). Comparing the headline number alone is misleading; the table shows the structure that actually determines what a claim is worth.

Business mileage rates in force on June 9, 2026
Country	Authority & period	Rate	Structure
United States	IRS · calendar 2026	72.5¢/mi	Flat, no distance cap. Separate rates for medical (20.5¢) and charity (14¢).
United Kingdom	HMRC · 6 Apr 2026 – 5 Apr 2027	55p/mi	Drops to 25p after 10,000 business miles in the tax year. +5p per passenger.
Canada	CRA · calendar 2026	73¢/km	Drops to 67¢ after 5,000 km. Add 4¢/km in NWT, Yukon, Nunavut.
Australia	ATO · 1 Jul 2025 – 30 Jun 2026	88¢/km	Flat, but claims capped at 5,000 km per car. Above that, use the logbook method.

Quick reimbursement calculator

Tiered thresholds and the Australian cap are applied automatically. For worked examples and edge cases, see the full calculator page.

What changed in 2026

This year produced more movement than usual, and one change that most reference pages still have wrong:

United States. The IRS raised the business rate from 70¢ to 72.5¢ per mile — the highest it has ever been — while trimming the medical and moving rate from 21¢ to 20.5¢. Both were set out in IR-2025-128, published December 29, 2025.

United Kingdom. The big one. On 21 May 2026, HMRC raised the approved rate for cars and vans from 45p to 55p for the first 10,000 miles — the first change since 2011/12 — and backdated it to 6 April 2026, so it covers the whole 2026/27 tax year. Anyone reimbursed at 45p since April can claim relief on the 10p shortfall. Because the announcement landed mid-year, many guides published in early 2026 still show 45p. Details and what to do about back-claims.

Canada. A 1¢ increase to 73¢/67¢ (announced January 14, 2026). Lease, interest and CCA limits were left unchanged.

Australia. No change — the ATO held the cents-per-km rate at 88¢ for 2025–26, which drew criticism from tax agents given fuel costs. The 2026–27 rate (from 1 July 2026) had not been determined when we last checked.

Common questions

Does commuting count as business mileage?

No, in all four countries. Ordinary travel between home and a regular workplace is private. Business mileage generally means trips to client sites, temporary workplaces, or between two work locations. The one common exception: if your home is genuinely your base of business, trips from home to client sites usually qualify.

Can my employer pay more than the official rate?

Yes, but the excess is normally taxable income. The official rate is the ceiling for tax-free reimbursement, not a legal limit on what an employer may pay. If your employer pays less than the official rate, the US generally offers no relief for employees (through 2025 rules suspending unreimbursed employee expenses), while the UK lets you claim Mileage Allowance Relief on the shortfall.

Do I need to keep records?

Yes — every authority can ask you to substantiate a claim. At minimum, log the date, start and end points, distance, and business purpose of each trip. The IRS and CRA expect contemporaneous logs; the ATO requires a basis for your estimate even under the cents-per-km method; HMRC expects journey records for AMAP payments.

Which rate applies if my trip crosses a rate change?

Apply the rate in force on the date the travel happened. US and Canadian rates run on calendar years; the UK tax year runs 6 April to 5 April; Australia's income year runs 1 July to 30 June. The UK's 2026 increase is the unusual case: it was announced in May but applies retroactively from 6 April 2026.

Primary sources

IRS, IR-2025-128 and Notice 2026-10 (Dec 29, 2025)
GOV.UK, Travel — mileage and fuel rates and allowances (updated 21 May 2026); House of Commons Library briefing CBP-9742
Department of Finance Canada, 2026 automobile deduction limits and expense benefit rates (Jan 14, 2026), via canada.ca
ATO, Cents per kilometre method; legislative instrument LI 2024/19

MileageRates.com is an independent reference site. Information here is general in nature and isn't tax advice; rules differ by personal situation, and rates can change. Confirm against the linked official source before filing or setting policy.