Mileage Reimbursement Calculator
Work out your mileage reimbursement or deduction using the 2026 IRS standard rates for business, medical, moving, and charitable driving.
Mileage Reimbursement Calculator
Trip Purpose
Miles Driven
Reimbursement Rate
Trip Details
Estimates only. Not tax or legal advice. Consult a tax professional for accuracy.
Notes
- Reimbursement paid at or below the IRS standard rate under an accountable plan is tax-free and is not reported as wages.
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How the mileage reimbursement calculator works
Mileage reimbursement comes down to one formula: miles driven multiplied by a rate per mile. This calculator handles that math and adds the details that trip people up.
Start by picking a trip purpose. The IRS sets a different rate for business, medical, moving, and charitable driving, so the purpose decides which rate applies. Enter your miles with the input box or the slider, then choose a rate: the 2026 IRS standard rate or a custom rate your employer set. Because the IRS raised the rates mid-year, the calculator also asks when the miles were driven: pick Jan–Jun 2026 or Jul–Dec 2026 to apply the rate in effect for that half of the year. The custom rate field only appears when you switch to custom mode.
If a single trip is a round trip, flip the round trip toggle to double the distance. If you made the same drive several times, set the number of trips. The total is miles times 2 (if round trip) times the number of trips, multiplied by the rate. You get the total reimbursement, the per-trip amount, and the exact rate applied.
2026 IRS standard mileage rates
The IRS updates the standard mileage rates each year based on a study of what it costs to run a vehicle. The original 2026 rates took effect January 1, 2026 (IRS Notice 2026-10), and the IRS then raised them mid-year effective July 1, 2026 (IRS Announcement 2026-11), the first mid-year change since 2022. Miles are valued at the rate in effect when they were driven, so 2026 has two sets of rates.
| Trip purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 | Who it applies to |
|---|---|---|---|
| Business | $0.725 / mile | $0.76 / mile | Employees and self-employed drivers (2025 full-year rate was $0.70) |
| Medical | $0.205 / mile | $0.235 / mile | Driving for qualified medical care |
| Moving | $0.205 / mile | $0.235 / mile | Active-duty military moving on orders only |
| Charitable | $0.14 / mile | $0.14 / mile | Driving in service of a qualified charity |
The business rate already covers gas, oil, maintenance, tires, insurance, registration, and depreciation, so you do not track those costs separately. The charitable rate is fixed by law, not by the annual IRS study, which is why it stays at 14 cents year after year.
Is mileage reimbursement taxed?
Most reimbursement is tax-free, but the rules depend on how your employer pays it. Under an accountable plan, you report your business miles, the employer reimburses you at or below the IRS standard rate, and the money is not treated as wages. It does not appear on your W-2, and no income tax or FICA applies.
If your employer pays more than the IRS rate, the extra amount counts as taxable income. The portion at or below the IRS rate stays tax-free; the portion above it gets added to your wages and is subject to income tax, Social Security, and Medicare. This calculator flags that taxable portion whenever your custom rate is above the IRS rate. Paying below the IRS rate is still fully tax-free; it just means you are reimbursed for less than the IRS estimate of your costs.
Because above-rate reimbursement becomes taxable wages, it cuts your take-home pay the same way a bonus does. You can model that effect with the Bonus Tax Calculator or the Gross-Up Calculator.
Self-employed vs. employee mileage rules
How you recover driving costs depends on whether you are self-employed or a W-2 employee.
Self-employed drivers deduct business miles on Schedule C. The deduction lowers both income tax and self-employment tax, so each business mile has real value at tax time. See the effect on your tax bill with the Self-Employment Tax Calculator.
W-2 employees generally cannot deduct unreimbursed mileage. The Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for employee business expenses, and later law kept that change in place, so most employees rely on employer reimbursement instead. A few groups, such as armed forces reservists and qualified performing artists, can still deduct mileage. For charitable driving, the 14-cent rate is a deduction the volunteer claims on Schedule A, not an employer reimbursement.
Frequently Asked Questions
Common questions about mileage reimbursement calculator
What is the 2026 IRS standard mileage rate?
The IRS raised the 2026 rates mid-year, so two sets apply. From January 1 through June 30, 2026, the business rate is 72.5 cents per mile and the medical and active-duty military moving rate is 20.5 cents. From July 1 through December 31, 2026, the business rate is 76 cents per mile and the medical/moving rate is 23.5 cents. The charitable rate is 14 cents all year; it is fixed by statute and does not change. The original 2026 rates come from IRS Notice 2026-10 and the July 1 increase from IRS Announcement 2026-11.
How do I calculate my mileage reimbursement?
Multiply your total miles driven by the rate per mile in effect when you drove them. For example, 1,000 business miles driven after July 1, 2026 at the $0.76 rate comes to $760; the same miles driven in the first half of the year at $0.725 come to $725. This calculator does the math for you, including round-trip mileage and multiple trips, so you enter your miles once and see the total.
Is mileage reimbursement taxable income?
Reimbursement paid under an accountable plan at or below the IRS standard rate is tax-free and does not show up as wages on your W-2. If your employer pays more than the IRS rate, the extra amount counts as taxable income and is subject to income tax and FICA. See how extra taxable pay affects your check with the Bonus Tax Calculator.
Are employers required to reimburse employees for mileage?
There is no federal law requiring mileage reimbursement, but some states (including California, Illinois, and Massachusetts) require employers to cover necessary business driving costs. Even where it is optional, most employers reimburse because amounts paid at or below the IRS rate are tax-free to the employee and deductible for the business.
Can employees still deduct unreimbursed mileage on their taxes?
For most W-2 employees, no. The Tax Cuts and Jobs Act suspended the unreimbursed employee expense deduction through 2025, and later law kept that change in place. A few groups (such as armed forces reservists, qualified performing artists, and fee-basis government officials) can still deduct mileage. Self-employed drivers deduct business miles on Schedule C.
What is the difference between the standard mileage rate and the actual expense method?
The standard mileage rate applies one flat per-mile figure that already accounts for gas, insurance, depreciation, and maintenance. The actual expense method adds up the real costs of running the vehicle and deducts the business-use percentage. The standard rate is simpler; the actual method can produce a larger deduction for expensive vehicles. You generally pick one method in the first year a car is used for business.
What counts as business miles vs. commuting miles?
Business miles are trips between worksites, to client or customer locations, to the bank or post office for work, or to temporary job sites. Commuting miles, the drive between your home and your regular workplace, are personal. They are not reimbursable or deductible, even if you take work calls along the way.
Does the mileage rate cover gas, insurance, and wear and tear?
Yes. The IRS sets the business mileage rate using an annual study of the fixed and variable costs of running a vehicle. The single rate is meant to cover fuel, oil, maintenance, repairs, tires, insurance, registration, and depreciation, so you do not track those costs separately when using the standard rate.