How to use the mileage reimbursement calculator
- Enter your distance as trips (miles per trip × number of trips, optionally round trip) or as odometer readings.
- Choose the rate: the IRS rate for the period when you drove, or your employer’s custom rate.
- Add business parking and tolls, which are claimed on top of the mileage rate.
The formula
Miles = Miles per trip × Trips (× 2 for round trips) or End odometer − Start odometer Reimbursement = Miles × Rate per mile + Parking + Tolls
Worked example
Ten 45-mile client visits in August 2026:
- Miles = 45 × 10 = 450
- 450 × $0.76 = $342.00
- The same trips in March 2026 at 72.5¢ would be $326.25
IRS standard mileage rates
| Purpose | Jan 1–Jun 30, 2026 | From Jul 1, 2026 | 2025 |
|---|---|---|---|
| Business | 72.5¢ | 76¢ | 70¢ |
| Medical / military moving | 20.5¢ | 23.5¢ | 21¢ |
| Charitable | 14¢ | 14¢ | 14¢ |
The IRS raised the business and medical rates in the middle of 2026, so use the rate for the date each trip was made. The charitable rate is set by law and rarely changes.
What counts as business mileage
- Counts: driving from your office to a client, between job sites, to the bank or supply store for the business, and to temporary work locations.
- Doesn’t count: your normal commute between home and your regular workplace, even if you take calls on the way.
- Home office: if your home is your principal place of business, trips from home to other work locations are generally business miles.
- Mixed trips: only the business portion counts.
Standard rate vs actual expenses
Self-employed people can choose between the standard mileage rate and actual car expenses (fuel, insurance, repairs, depreciation, registration) multiplied by the business-use percentage. The standard rate is simpler and covers gas, maintenance, insurance and depreciation. If you want to use it for a car you own, you generally must choose it in the first year the car is used for business. Parking and tolls are added under either method; interest on a car loan is deductible for the self-employed in proportion to business use.
Tips for employers and employees
- Accountable plans: reimbursements up to the IRS rate with a proper mileage log are tax-free to the employee.
- Above the IRS rate: any excess is treated as taxable wages.
- Keep a contemporaneous log — recording trips as they happen is much more credible than rebuilding a year from memory.
- Electric vehicles use the same standard mileage rate as gas cars.
Outside the US
Other countries set their own rates. In the UK, HMRC’s approved mileage allowance is 45p a mile for the first 10,000 business miles in a tax year and 25p after that. Canada sets a per-kilometre allowance each year through the CRA. Choose the custom rate and enter your local figure.