Mileage Reimbursement Calculator
Keep a log with the date, purpose and miles of each trip. The IRS expects records made at or near the time.
How the mileage reimbursement calculation works
Multiply business miles by the IRS standard mileage rate to get a reimbursement or deduction.
Count business miles only
Trips to clients, job sites, suppliers or the bank count. Driving from home to your regular workplace is commuting and doesn't.
Multiply by the rate per mile
The IRS business rate from 1 July 2026 is 76 cents. 1,200 miles × $0.76 = $912.
Add tolls and parking
Business tolls and parking fees are reimbursed or deducted on top of the mileage rate. Parking at your regular workplace is commuting and doesn't count. Gas, insurance and repairs are already inside the rate.
Keep a log
Record the date, destination, purpose and miles of each trip. Without records the IRS can disallow the deduction.
Worked example. Fifty 24-mile round trips is 1,200 business miles. At the IRS rate of 76 cents per mile that applies from 1 July 2026, the reimbursement is $912.00.
Mileage Reimbursement FAQ
How do I calculate mileage reimbursement?
Multiply business miles by the rate per mile and add tolls and parking. 1,200 miles at $0.76 is $912.
What is the IRS mileage rate for 2026?
72.5 cents per business mile for 1 January–30 June 2026 and 76 cents from 1 July 2026, after a mid-year increase. The IRS usually sets one rate a year, so check irs.gov before you file or reimburse.
What was the IRS mileage rate for 2025?
70 cents per business mile for all of 2025. Use 70 cents for 2025 trips even if you file or get reimbursed in 2026. 1,200 miles at $0.70 is $840.
What if my trips span 30 June 2026?
Split the miles by date. Miles driven 1 January–30 June 2026 use 72.5 cents, miles from 1 July use 76 cents. Run the calculator once for each part and add the totals. 1,200 miles at $0.725 is $870.
What are the 2026 medical and charity mileage rates?
Medical and military moving: 20.5 cents per mile for 1 January–30 June 2026 and 23.5 cents from 1 July 2026. Charity: 14 cents per mile all year. Enter the rate you need in the rate box.
Do employers have to use the IRS rate?
No. Federal law doesn't set a required rate. An allowance at or below the federal rate, paid under an accountable plan with proper records, isn't included in the employee's W-2 wages. Some states have their own rules: California Labor Code 2802 requires employers to reimburse expenses employees incur as a direct consequence of their work duties.
Is mileage reimbursement taxable?
Not usually, if it's paid under an accountable plan at or below the IRS rate and you account for the miles. Amounts above the federal rate, or paid without records, are reported as wages.
Can I deduct gas instead of using the mileage rate?
You can use actual expenses (gas, repairs, insurance, depreciation) times your business-use share instead. You can't claim both, and the rules on switching methods are strict.
Is the calculator's result guaranteed?
It's an estimate and isn't tax advice. Your rate, records and employer policy decide the final amount.
Sources: IRS: Standard mileage rates · IRS: Publication 463, Travel, gift and car expenses · California Labor Commissioner: Deductions FAQ (Labor Code 2802 business expenses)