2026 U.S. Mechanical Royalty Rates Increase: CRB Sets New Rates

The Copyright Royalty Judges have officially announced the new 2026 U.S. mechanical royalty rates for physical formats and permanent downloads. This decision delivers a modest cost-of-living increase that will affect labels, publishers, and songwriters beginning January 1, 2026.

2026 U.S. Mechanical Royalty Rates Increase: CRB Sets New Rates

Under the final CRB rule, the statutory 2026 U.S. Mechanical Royalty Rates will rise to:

• 13.1 cents per work (up from 12.7¢ in 2025)
• 2.52 cents per minute (or fraction thereof) for songs longer than five minutes

These updated rates apply to vinyl, CDs, and permanent downloads. Notably, streaming is governed under a separate statutory framework. The adjustment is based on a Consumer Price Index increase to CPI-U 324.800. The Copyright Royalty Board calculates the formula-driven rise required under §385.11.

Why This Matters

While the increase may appear incremental, it continues a multi-year effort. The goal is to keep mechanical royalties aligned with inflation and the rising costs of producing and distributing physical music formats. Vinyl remains one of the strongest bright spots in recorded music revenue. These updates help ensure creators are compensated fairly as the format grows.

For independent artists who still rely on Bandcamp downloads, D2C vinyl, and CDs at the merch table, the new 2026 rate establishes a slightly higher baseline for per-unit payouts. For labels and distributors, the revised rate provides clarity for pricing, budgeting, and royalty forecasting heading into the new year.

The Bigger Picture

These adjustments to the 2026 U.S. Mechanical Royalty Rates fall under the existing Phonorecords IV rate-setting period (2023–2027). While streaming royalty reform continues to generate industry-wide debate, the mechanical rate for physical formats and downloads remains one of the few areas where annual cost-of-living increases are automatic and predictable.

With inflation still shaping wider economic conditions, the 2026 update signals stability for songwriters and publishers. It continues incremental progress at a time when many creators are calling for broader reform across the entire royalty ecosystem.

Read the full CRB 2026 U.S. Mechanical Royalty Rates ruling here.

Bruce Houghton is Founder of Hypebot, Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of Skyline Artists.

“2026 U.S. Mechanical Royalty Rates Increase: CRB Sets New Rates” first appeared on Hypebot.com.