HMRC Mileage Rates 2026/27 - Capture Expense
Get the latest HMRC mileage rates for 2026/27—approved rates for cars, vans, motorcycles and bikes, advisory fuel rates, & compliance.
captureexpense.comHere are the latest developments on mileage allowance for 2026 from reliable sources:
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United States: The IRS increased the optional standard mileage rate for business use to 72.5 cents per mile for 2026, up from 70 cents in 2025. This also affects rates for medical, moving, and charitable mileage under specific rules, with medical and moving rates typically set at 20.5 cents per mile and the charitable rate remaining at 14 cents per mile. The maximum vehicle cost used to compute mileage under fixed-and-variable-rate plans rose to 61,700 dollars for 2026. These updates come from the IRS and related tax publications released in late 2025 and early 2026. [IRS notice and coverage: 72.5¢/mi for general business; medical and moving adjustments; FMV threshold up to $61,700][2][4][5]
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United Kingdom: There has been ongoing discussion about mileage allowances for grey fleet drivers and related public sector policies, but as of 2026 there has not been a confirmed nationwide increase to the official mileage allowance. Some UK commentary notes that costs have risen and a future fiscal event might address any potential rise, but no definitive 2026 rate change has been announced publicly. If you’re in the UK, you should monitor HMRC guidance and any announcements from your employer or sector body for updates specific to 2026/27. [UK coverage: Reeves remarks and fiscal-event context; HMRC guidance for mileage rates handling][3][7][10]
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Other notable notes:
- Some organizations and expense platforms have published summaries of the 2026 IRS rates to assist employers in updating reimbursement policies and payroll integrations. Expect these to be used by organizations that reimburse employees for business travel in the US. [Expensify summary, WorldatWork briefing][4][9]
- In addition to the general business rate, there are separate rates for medical, moving (limited eligibility), and charitable mileage. Employers often choose to apply these rates under various reimbursement plans; the FMV thresholds and vehicle-cost limits impact how reimbursements are calculated under certain methods. [IRS notices and related articles][1][5]
Would you like a concise country-by-country table of the 2026 mileage rates (general business, medical, moving, charitable) and any FMV/cost limits, plus notes on applicability? If you have a specific country (e.g., US, UK) or a particular employer policy in mind, I can tailor the figures and provide exact citations.