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Mileage Reimbursement Calculator

Calculate mileage reimbursement using the 2026 IRS standard rate or a custom per-mile rate for business travel.

Miles per Trip (round trip)

Trips per Month

Reimbursement Rate

The IRS standard mileage rate for 2026 is $0.70 per mile for business use. This rate covers fuel, depreciation, insurance, and maintenance costs.

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Introduction

The IRS standard mileage rate exists to simplify business vehicle expense tracking -- but using the wrong rate, miscounting deductible miles, or failing to keep contemporaneous records creates real tax exposure. The IRS sets the standard business mileage rate annually based on fixed and variable vehicle costs. For 2026, the rate is $0.70 per mile for business use. This rate covers fuel, depreciation, insurance, maintenance, and registration -- all wrapped into one per-mile figure. For employees, it sets the reimbursement benchmark. For self-employed workers on Schedule C, it determines the deduction. Miscalculating by just $0.05 per mile across 20,000 annual miles is a $1,000 error. This calculator uses the 2026 IRS rate as the default and supports custom employer rates for companies that reimburse above or below the federal benchmark.

What This Calculator Does

This mileage reimbursement calculator determines total reimbursement amounts for business travel using the 2026 IRS standard mileage rate or a custom per-mile rate. Enter trip distance, trips per month, and rate selection to calculate monthly and annual reimbursement totals. It also supports multiple trip types in a single calculation and shows the IRS documentation requirements for each claim.

The Formula

Reimbursement = Total Miles x Rate per Mile | Annual Estimate = Monthly Miles x Rate x 12

Multiply total deductible or reimbursable business miles by the applicable per-mile rate. The 2026 IRS standard mileage rate for business is $0.70 per mile. Medical and moving mileage (for active-duty military only) is $0.21 per mile. Charitable mileage remains $0.14 per mile by statute. For multiple trip types, calculate each separately and sum. Annual estimates multiply monthly mileage by the rate by 12, or sum monthly calculations if mileage varies seasonally.

Step-by-Step Example

Identify deductible or reimbursable trips

Client site visits: 85 miles round-trip, 3 times per month. Conference attendance: 120 miles round-trip, 1 time per month. Regular office commute: NOT deductible -- commuting from home to your primary office is explicitly excluded.

Calculate monthly total

Client visits: 85 x 3 = 255 miles. Conference: 120 x 1 = 120 miles. Monthly business miles: 375. Monthly reimbursement at $0.70: 375 x $0.70 = $262.50.

Calculate annual total

If monthly mileage is consistent: $262.50 x 12 = $3,150.00 annual reimbursement. If seasonal -- model each month separately.

Verify documentation requirements

Each trip must have: date, starting location, destination, business purpose, and total miles. Odometer readings are preferred but not required if the total miles are substantiated another way. A mileage log or app export satisfies IRS requirements.

Real-World Use Cases

Employee Monthly Expense Report

A pharmaceutical sales rep drives 1,200 business miles per month visiting doctors' offices and hospitals. At the $0.70 IRS rate, monthly reimbursement is $840. Submitted monthly with a mileage log, the annual reimbursement is $10,080 -- a meaningful income supplement that requires zero out-of-pocket vehicle expenses if the rate adequately covers operating costs.

Self-Employed Schedule C Deduction Planning

A freelance consultant drives 14,000 business miles per year. Standard mileage deduction: 14,000 x $0.70 = $9,800. At a 24% marginal tax rate, this deduction saves $2,352 in federal income tax. Comparing this against the actual expense method (fuel + insurance + depreciation + maintenance) to find the larger deduction takes only minutes with the actual cost data.

HR Policy Rate Setting

A company reviewing its mileage reimbursement policy compares reimbursing at the IRS rate ($0.70) versus a flat $0.55 per mile. At 500,000 total annual employee business miles, the difference is $75,000 per year. This calculator quantifies the cost impact of policy decisions and helps HR benchmark against IRS guidance.

Comparison

Mileage Purpose	2026 IRS Rate	Annual Deduction (10,000 miles)	Documentation Required
Business use	$0.70/mile	$7,000	Date, destination, purpose, miles
Medical travel	$0.21/mile	$2,100	Date, destination, medical purpose, miles
Charitable use	$0.14/mile	$1,400	Date, charity name, purpose, miles
Moving (active military only)	$0.21/mile	$2,100	Military orders, date, miles
Commuting (home to regular office)	NOT deductible	$0	N/A -- excluded by IRS

Common Mistakes to Avoid

Claiming commute miles as business miles. The IRS is explicit: driving from your home to your regular place of business is commuting and is not deductible, even if you conduct business during the commute. The first deductible mile begins when you leave your regular office or home office (if your home is your principal place of business) to visit a client or second location.
Not maintaining contemporaneous records. The IRS requires mileage records to be created at the time of the trip, not reconstructed from memory at year-end. A single spreadsheet updated weekly or a mileage app that logs trips automatically satisfies this requirement. Reconstructed year-end summaries without per-trip detail are frequently disallowed in audits.
Using the prior year's mileage rate. The IRS adjusts the standard mileage rate annually -- and occasionally mid-year when fuel prices spike significantly. Using the 2025 rate instead of the 2026 rate on your current return is a systematic error. Verify the current year rate at IRS.gov before each year's filing.
Failing to choose a method at the start. You must choose between the standard mileage rate and the actual expense method for each vehicle in its first year of business use. If you choose standard mileage first year, you can switch to actual expenses in later years. If you choose actual expenses first year and use MACRS depreciation, you cannot switch to standard mileage for that vehicle.

Frequently Asked Questions

What is the 2026 IRS standard mileage rate?

The IRS standard mileage rate for business use in 2026 is $0.70 per mile. For medical transportation and active-duty military moving expenses: $0.21 per mile. For charitable services: $0.14 per mile (set by statute, not annually adjusted). These rates are effective January 1, 2026. The IRS occasionally issues a mid-year adjustment when fuel prices change significantly -- check IRS.gov for any in-year updates.

Can I deduct more than the standard mileage rate using actual expenses?

Possibly. The actual expense method deducts the business-use percentage of all vehicle operating costs: fuel, oil, tires, repairs, insurance, registration, depreciation (or lease payments), and garage rental. If your vehicle has high operating costs (older, low-efficiency, expensive to insure) or high business-use percentage, actual expenses may exceed the standard rate deduction. The standard rate is simpler; actual expenses require detailed records but may yield a larger deduction. Calculate both before choosing.

Does my employer have to reimburse me at the IRS rate?

No. Employers are not legally required to reimburse at the IRS standard rate. The IRS rate is a safe harbor for deduction purposes, not a legal minimum reimbursement rate. However, if your employer reimburses below the standard rate, you may deduct the unreimbursed difference as a business expense (for self-employed workers on Schedule C; employees lost this deduction after the Tax Cuts and Jobs Act). If your employer reimburses above the IRS rate, the excess is taxable income to you.

What records do I need to keep for mileage deductions?

IRS Publication 463 specifies: for each business trip, record the date, starting location, destination, business purpose, and number of miles driven. Odometer readings at the beginning and end of each year are also recommended. Total annual mileage and business-use percentage calculations should be maintained. A mileage log -- paper, spreadsheet, or app-generated -- that captures these elements for each trip satisfies the requirement.

Accuracy and Disclaimer

This calculator uses the 2026 IRS standard mileage rate of $0.70 per mile for business use. Mileage rates are subject to mid-year adjustment by the IRS. This tool is for estimation and planning purposes only and does not constitute tax advice. Self-employed individuals and employees should consult a tax professional regarding the optimal vehicle expense method for their specific situation.

Conclusion

Document every business mile contemporaneously -- at the time of the trip, not at tax time. The IRS requires records that include date, origin, destination, business purpose, and miles. A mileage tracking app removes the documentation burden and builds an audit-ready log automatically. After calculating your reimbursement, use the Fuel Cost Per Mile Calculator to compare actual fuel cost against the standard rate to see your per-mile profit from the mileage deduction, and the Trucking Cost Per Mile Calculator for commercial fleet operations requiring full cost accounting.