How to use the mileage reimbursement calculator
- Enter the distance of each trip one way, in miles.
- Tick round trip if you drive back the same way.
- Enter the number of trips and whether that's in total, per week or per month.
- For weekly trips, enter how many weeks a year you make them.
- Choose the mileage rate: one of the 2026 IRS rates, or a custom rate your employer pays.
- Optionally add parking and tolls per trip.
- Read the reimbursement for the period and the year, and compare every IRS rate in the table.
How mileage reimbursement is calculated
The IRS sets the business rate from a yearly study of what it costs to run a car, including fuel, maintenance, insurance and depreciation. The medical and moving rate covers only the running costs, such as fuel and oil, so it is much lower. The charity rate is fixed by law.
The 2026 IRS standard mileage rates
The IRS raised the business and medical rates partway through 2026 because of higher fuel prices, so there are two sets of rates this year:
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢ a mile | 76¢ a mile |
| Medical, and moving for active-duty military | 20.5¢ a mile | 23.5¢ a mile |
| Charity work | 14¢ a mile | 14¢ a mile |
The January rates come from IRS Notice 2026-10, announced on December 29, 2025. The July rates come from Announcement 2026-11 in Internal Revenue Bulletin 2026-29, and they apply to driving on or after July 1, 2026. Use the rate for the date you actually drove: a trip in March uses 72.5 cents even if you claim it in August. You can check the current figures on the IRS standard mileage rates page.
Worked example
The defaults are an 18-mile trip each way, made 5 times a week for 50 weeks, at the business rate of 76 cents a mile:
- Miles per trip: 18 × 2 = 36 miles
- Miles per week: 36 × 5 = 180 miles
- Reimbursement per trip: 36 × $0.76 = $27.36
- Reimbursement per week: 180 × $0.76 = $136.80
- Per year: 180 × 50 = 9,000 miles, so 9,000 × $0.76 = $6,840.00
The same 9,000 miles would be worth $6,525.00 at the January business rate of 72.5 cents, $2,115.00 at the July medical rate and $1,260.00 at the charity rate.
Keeping a mileage log
Whatever the rate, the IRS expects a record made at or near the time of each trip. Note the date, where you went, the business purpose and the miles, from odometer readings or a mapping app. Keep receipts for parking and tolls, which can be claimed in addition to the standard rate. Commuting between your home and your regular workplace is personal driving and doesn't count, even if you take work calls on the way. For the cost of a single journey in fuel alone, use the fuel cost calculator.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business driving it is 76 cents a mile from July 1 to December 31, 2026, and 72.5 cents a mile from January 1 to June 30, 2026. Medical and military moving driving is 23.5 cents a mile from July 1 and 20.5 cents before that. Charity driving is 14 cents a mile all year.
Does my employer have to pay the IRS rate?
No. The IRS rate is a benchmark, not a required amount, and employers can choose their own rate. Some states have their own rules about reimbursing work expenses, so check your state's labor department. Choose "Custom rate" to use your employer's figure.
Is mileage reimbursement taxable?
Payments up to the IRS business rate under an employer's accountable plan, where you report your miles and return any excess, are generally not taxable income. Amounts above the rate, or flat car allowances paid without a mileage record, are usually treated as wages. A tax professional can confirm how your plan works.
Can I use the standard rate if I'm self-employed?
Yes, self-employed people can deduct business driving at the standard rate instead of tracking actual car expenses, subject to the IRS rules on when each method can be used. Keep a mileage log either way. The income tax calculator can help you estimate what a deduction is worth.
Related calculators
- Fuel Cost Calculator — The fuel cost of a road trip from distance, fuel economy and price, with round trips and cost per person.
- Gas Mileage Calculator — Your car's real fuel economy in mpg (US and UK), L/100 km and km/L from two fill-ups, plus cost per mile.
- Income Tax Calculator — Estimate your 2026 US federal income tax, tax bracket and effective rate for any filing status.
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