The four major English-speaking tax jurisdictions all let workers deduct business mileage, but the rates, methods, and log requirements differ significantly. Here is the comparison.
United States: IRS standard mileage rate
Rate (2026): 72.5 cents per mile (business). Adjusts annually based on Motus cost-of-operating studies. Mid-year increases are rare but happened in 2008, 2011, and 2022.
Method choices: standard mileage rate or actual expenses. Switching rules apply (must use standard in year one to keep the option to switch).
Log: contemporaneous, year-round. Four required fields per trip: date, destination, business purpose, miles. Full requirements.
Tax year: calendar year (Jan 1 to Dec 31).
Where it goes: Schedule C, line 9 for self-employed; W-2 deduction was permanently eliminated by OBBBA in 2025.
Canada: CRA tiered rate
Rate (2026): 73 cents per kilometre for the first 5,000 km, then 67 cents per km. Plus 4 cents/km bonus for drivers in Northwest Territories, Yukon, and Nunavut. CRA breakdown.
Method choices: employees take the CRA-approved per-km amount. Self-employed can use actual expenses with logbook method.
Log: 12-month logbook recommended for self-employed. Employees keep records of business trips with employer.
Tax year: calendar year (Jan 1 to Dec 31).
Where it goes: Form T2125 for self-employed; T777 for employees.
United Kingdom: HMRC AMAP
Rate: 45p per mile for the first 10,000 business miles, then 25p. Motorcycles: 24p. Bicycles: 20p. Set in 2011 and unchanged since. AMAP.
Method: employees use the AMAP rate. Self-employed sole traders can use AMAP or actual costs.
Log: contemporaneous business mileage records. HMRC standards similar to IRS.
Tax year: 6 April to 5 April (NOT calendar year).
Where it goes: Form P87 or Self Assessment for employees. Sole traders use Self Assessment.
Australia: ATO cents per kilometre and logbook
Cents per km rate (2025-26): 88 cents per km, capped at 5,000 business km per year per vehicle. Set annually by ATO. ATO rates.
Method choices: cents per kilometre OR logbook method. The logbook method has no annual cap and is often better for high-mileage drivers.
Log: for cents-per-km, calculation methodology with reasonable estimate. For logbook method, 12 consecutive weeks of representative trips, valid for up to 5 years.
Tax year: 1 July to 30 June (NOT calendar year).
Where it goes: Individual tax return; vehicle expense schedule.
Side-by-side comparison
- Highest absolute rate: Australia (88¢/km) and US (72.5¢/mile, equivalent to ~45¢/km).
- Lowest absolute rate: UK (45p/mile or ~28¢/km), frozen since 2011.
- Most generous for high-mileage drivers: US (no cap on standard rate) and Australian logbook method.
- Simplest recordkeeping: AU cents-per-km method (capped at 5,000 km, light docs).
- Strictest contemporaneous standard: US IRS audits and Australian logbook method.
- Tax year mismatch: UK and Australia use non-calendar years; affects how a driver in those jurisdictions thinks about quarterly periods.
What this means for international drivers
A self-employed driver running businesses across two of these jurisdictions needs separate logs per jurisdiction. The methods, rates, and tax years do not align. A multi-jurisdiction tracking app makes this manageable; a single-jurisdiction app or spreadsheet does not.
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