Mileage rates 2026: the IRS, HMRC, CRA and ATO rates in one place

By Maria Torres, The Back-Office Fixer · Updated November 1, 2026 · Bookkeeping and taxes

Last checked: November 1, 2026, against the IRS, GOV.UK, Canada.ca and the Australian Federal Register of Legislation. Next changes: the IRS usually announces next year's rate in December, the CRA in January, HMRC before April 6 and the ATO before July 1.

Short answer: if you drive to jobs, these are the official rates for 2026:

• US (IRS): 76 cents a mile for business driving from July 1 to December 31, 2026, and 72.5 cents from January 1 to June 30.
• UK (HMRC): 55p a mile for the first 10,000 business miles in a car or van in the 2026 to 2027 tax year, then 25p. The 55p replaced 45p from April 6, 2026.
• Canada (CRA): 73 cents a km for the first 5,000 km in 2026, then 67 cents (77 and 71 cents in the territories). This is the tax-free allowance rate for employees. Self-employed people claim actual costs instead.
• Australia (ATO): 91 cents a km for 2026-27, for up to 5,000 business km per car.

The calculator turns your logged miles or kilometres into a dollar or pound figure. The full table, with who can use each rate and the official source, is underneath.

Mileage calculator

The calculator needs JavaScript. If it doesn't load, multiply your business distance by the rate in the table below, applying each band in turn.

The calculator uses the car and van rates. It doesn't check whether you're allowed to use the rate: read the rules for your country below first.

Every official rate, side by side

Download the table as a CSV file, free to reuse with a link back to this page.

The rules behind each rate

United States. The IRS standard mileage rate lets a business owner deduct a flat amount per business mile instead of adding up gas, insurance, repairs and depreciation. The IRS changed the 2026 rate in the middle of the year, from 72.5 cents to 76 cents on July 1, so a 2026 deduction uses two rates. The IRS has rules on when you can switch between the standard rate and actual costs. Read IRS Topic 510 before your first year with a new vehicle.

United Kingdom. Sole traders can use the flat rate per mile instead of the real costs of buying and running the vehicle. You can't use it for a vehicle you've already claimed capital allowances on, and once you use flat rates for a vehicle, you must keep using them for as long as you use that vehicle for the business. Parking and other travel, such as train fares, can still be claimed on top (GOV.UK). GOV.UK's own example: 11,000 business miles in 2026 to 2027 is 10,000 x 55p plus 1,000 x 25p, or £5,750.

Canada. There's no flat per-km deduction for the self-employed. Sole proprietors claim their actual vehicle expenses, such as fuel, insurance, maintenance and licence fees, times the share of kilometres driven for business, on Form T2125 (CRA). The 73 cent rate matters if you have employees who drive their own cars: the CRA generally treats an allowance at the prescribed per-km rate as reasonable and tax free, provided it's based only on business kilometres and you don't also reimburse the same costs.

Australia. The cents per kilometre method covers all your car running costs, including depreciation, in one rate, for up to 5,000 business kilometres per car per year. You don't need written evidence of the costs, but you must be able to show how you worked out your business kilometres. Above 5,000 km, the logbook method lets you claim the business share of actual costs (ATO).

Worked example

This is an illustration with stated assumptions, not a real business. A solo cleaner drives 100 business miles a week for 48 weeks, 4,800 miles in 2026, split evenly across the year.

In Canada, the same cleaner would add up the year's actual vehicle costs and claim the business share instead.

Keep a log, or lose the claim

Every one of these rates depends on records. The IRS, HMRC, CRA and ATO all expect you to show how you worked out your business distance. For each business trip, record the date, start and end point, purpose, and the distance, plus your odometer reading at the start and end of the year. The CRA also accepts a full logbook for one year and then a three-month sample in later years, if it stays within 10% of the base year (CRA motor vehicle records). Most field service apps record jobs and addresses, which makes a log easier to rebuild, but check that what you keep meets your tax authority's rules.

Driving is a real cost of every job, so build it into your price. Our house cleaning rate formula shows how, using the IRS rate. If you're choosing software to run the jobs themselves, see Jobber vs Housecall Pro for a solo cleaning business.

This page is general information, not tax advice. If your situation is unusual, check with a tax professional in your country.

Sources

Checked November 1, 2026.

• IRS: Standard mileage rates (76 cents from July 1, 2026; 72.5 cents January 1 to June 30, 2026; 70 cents in 2025) and Topic 510, business use of car
• GOV.UK: Simplified expenses: vehicles (55p and 25p for 2026 to 2027, 45p before April 6, 2026, rules, worked example) and HMRC Travel: mileage and fuel rates and allowances (approved mileage rates, motorcycles, bicycles, passenger payments)
• Canada Revenue Agency: Automobile allowance rates (2026 and earlier rates, reasonable allowance conditions), Calculating motor vehicle expenses and Motor vehicle records
• Australia: Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2026 (91 cents from July 1, 2026) and ATO Cents per kilometre method (5,000 km cap, what the rate covers, records, 2025-26 rate)

Spotted a new rate? Let us know and we'll update the table.