HMRC mileage rates for 2026/27

In short

• Cars and vans: 55p a mile for the first 10,000 business miles from 6 April 2026 (45p in earlier years), 25p after.
• Motorbikes 24p, bicycles 20p, passengers 5p each.
• Car rate raised from 45p to 55p on 6 April 2026, the first change since April 2011.
• If your employer pays less, you claim tax relief on the difference.

Work out your own figure with the mileage calculator, or see how the work mileage tax rebate works.

The current approved rates

Rates from 6 April 2026. For earlier years the car and van rate was 45p. The 10,000-mile threshold is per tax year and applies to each employment separately, unless your employers are associated, when the miles are added together.

How the rates have changed

The car rate was 40p until April 2011, when it rose to 45p. It then stayed at 45p for 15 years despite fuel and insurance costs rising, until it went up to 55p on 6 April 2026. The long freeze is one reason employers paying the full rate are rare in care and agency work.

Approved rate against what you are paid

If your employer pays less than the approved rate you claim tax relief on the shortfall, called Mileage Allowance Relief. If they pay more, the excess is taxable. The 5p passenger rate can only be paid by an employer; you cannot claim relief on it.

Worked example (a year before April 2026)

12,000 work miles, employer pays 25p. Approved amount: 10,000 at 45p (£4,500) plus 2,000 at 25p (£500) equals £5,000. Paid: £3,000. Shortfall £2,000, tax back £400 a year at 20%.

Questions

Is there a different rate for electric cars?

No. The approved mileage rates are the same for all fuel types. The advisory electricity rate applies to company cars only.

Do the rates cover parking and tolls?

No. Parking, tolls and congestion charges on work journeys are claimable separately at actual cost.

Check my rebate