IRS Boosts Mileage Rate, Makes Other Updates for 2026 - HRMorning
IRS has released 2026 mileage rates and other updates impacting employees who drive personal vehicles for work or employer-provided vehicles.
www.hrmorning.comHere are the latest widely reported changes to mileage allowances for 2026, with notes for different regions.
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United Kingdom: The UK announced an uplift to the Approved Mileage Allowance Payment (AMAP) for work-related car and van use. The rate increased from 45p per mile to 55p per mile for the first 10,000 miles in a tax year, backdated to April 2026. Rates beyond the first 10,000 miles remain unchanged at 25p per mile, and other mileage rates (e.g., cycling or motorbike) were not reported to have changed in this update. This change was part of a broader package to help with rising living costs, and government sources indicated the rate would be reviewed again in the next Budget cycle.[1]
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United States: The Internal Revenue Service (IRS) announced 2026 standard mileage rates. The business rate increased to 72.5 cents per mile (up from 70 cents in 2025). Other mileage categories (medical, moving, charitable) have specific rates, with medical and moving generally around 20.5 cents per mile and the charitable rate at 14 cents per mile; these values are set by statute or by IRS notices for 2026. The 72.5-cent rate applies for general business use and is part of the IRS Notice 2026-10 and related publications.[2][3][5][6]
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Related context: Several sources confirm that 2026 mileage rates have been updated to reflect inflation and cost data, with different sectors (government, tax authorities, and employers) applying these rates in practice. For example, HR Morning summarized the IRS update on 2026 mileage rates, while Bloomberg Law reported the same rate change for the business mileage rate, and Expensify provided practical guidance for organizations implementing the update.[3][9][2]
Notes and cautions
- The UK rate change applies specifically to car and van mileage for work-related use; it does not automatically cover all mileage. Employment arrangements (employer reimbursements vs. tax relief) can differ, and backdating to April 2026 means claims may be raised for the 2026/27 tax year depending on payroll or self-assessment timing.[1]
- In the US, the 72.5 cents per mile rate is for general business use of a vehicle. Other mileage categories have distinct rates and rules, so employers and employees should consult IRS Notice 2026-10 and related guidance when calculating deductions or reimbursements.[5][2]
Would you like a quick-country comparison table or a chart showing the 2025 vs 2026 rates for the US and UK, including the first-10,000-mile cap in the UK and the different categories in the US? I can compile that with sources.