Mileage Reimbursement Calculator
Enter your business miles and the IRS standard mileage rate to see your reimbursement. Confirmed IRS business rates for 2023–2026 are built in, and you can enter a custom rate for any year or company policy.
How mileage reimbursement works
Reimbursement is simply business miles × a per-mile rate. Most employers use the IRS standard mileage rate, which is designed to cover the full cost of running a vehicle — fuel, maintenance, insurance, and depreciation — so you do not itemize those expenses separately.
The IRS publishes a new rate every year. We hard-code only the rates we can verify; for the current year, confirm the figure on irs.gov and use the custom-rate box if it differs.
| Tax year | IRS business rate |
|---|---|
| 2026 | 72.5¢ / mile |
| 2025 | 70¢ / mile |
| 2024 | 67¢ / mile |
| 2023 | 65.5¢ / mile |
Your normal commute between home and work is never reimbursable. Driving between job sites, to clients, or to a temporary location during the workday usually is. If you also need to total clock-in/out hours for the same trips, the Time Card Calculator can help, and the Annual Income Calculator rolls reimbursements and pay into a yearly total.
Frequently asked questions
It is a per-mile rate the IRS sets each year that you can use to value business driving without tracking actual car costs. The confirmed business rates are 72.5¢/mile for 2026 (Notice 2026-10, effective Jan 1, 2026), 70¢/mile for 2025, 67¢/mile for 2024, and 65.5¢/mile for 2023. The IRS announces a new rate each year, so confirm the current-year figure on irs.gov before reimbursing.
Federal law does not require employers to reimburse mileage, but unreimbursed expenses cannot push a worker’s pay below the federal minimum wage. Some states — notably California (Labor Code §2802) and Massachusetts — do require reimbursement of necessary business expenses, including mileage.
Reimbursement paid at or below the IRS standard rate under an accountable plan is generally not taxable income. Any amount paid above the IRS rate, or paid without proper records, is treated as taxable wages.
The business rate is meant to cover the full cost of operating the vehicle — gas, oil, maintenance, repairs, tires, insurance, registration, and depreciation. You do not add those costs separately on top of the per-mile rate.
No. Driving between home and your regular workplace is a personal commute and is not reimbursable business mileage. Travel between job sites, to clients, or to a temporary work location during the day generally does qualify.
Yes. Employers can set any reimbursement rate, including one below or above the IRS rate. Use the custom-rate option above to match your company policy. Remember that amounts above the IRS rate are taxable to the employee.