Mileage Reimbursement Calculator
Calculate mileage reimbursement at the 2026 IRS rates, including the July 1 mid-year increase. Enter your miles, pick the period and purpose, or set a custom company rate, and see your total right away.
Mileage Reimbursement Calculator
Miles Driven
Purpose / Rate
The IRS raised the 2026 rates effective July 1 (Announcement 2026-11). Pick the period you drove in; split your miles at June 30 if they span both.
Enter dollars per mile (e.g. 0.76).
Moving reimbursement is generally only qualified for active-duty Armed Forces moves under current law.
Number of Trips (optional)
Leave at 1 if Miles Driven is already your total. Set higher to repeat the same trip miles.
Estimate only. The standard rate already covers fuel, depreciation, insurance, and maintenance.
Track Hours and Travel in One Place
Log your shifts, travel time, and totals on the go. Get Timeclock44 to keep your hours and reimbursement records together.
How to calculate mileage reimbursement
The formula is simple: total miles multiplied by the per-mile rate equals your reimbursement.
Say you drove 500 business miles in a month after July 1, 2026. At the current IRS business rate of $0.76 per mile, that works out to 500 x $0.76 = $380.00. The same 500 miles driven between January and June would use the earlier $0.725 rate: 500 x $0.725 = $362.50.
If you take the same trip more than once, set the trips field to multiply your per-trip miles. Ten trips of 50 miles each is 500 total miles, the same $380.00, with a per-trip amount of $38.00.
2026 IRS standard mileage rates (and the July 1 split)
The IRS set the initial 2026 rates in Notice 2026-10, effective January 1, 2026. Then, citing a sharp rise in gasoline prices, it raised the business and medical/moving rates mid-year in Announcement 2026-11 (Internal Revenue Bulletin 2026-29), effective July 1, 2026. Mid-year changes are rare; the last one was in 2022.
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 | 2025 (full year) |
|---|---|---|---|
| Business | 72.5¢ / mile | 76¢ / mile | 70¢ / mile |
| Medical / Moving | 20.5¢ / mile | 23.5¢ / mile | 21¢ / mile |
| Charity | 14¢ / mile | 14¢ / mile | 14¢ / mile |
If your driving spans both halves of the year, split your miles at June 30 and run each batch at its own rate. For example, 900 business miles in the first half plus 1,100 in the second half is (900 x $0.725) + (1,100 x $0.76) = $652.50 + $836.00 = $1,488.50. Applying one rate to all 2,000 miles would be wrong in either direction.
The business rate reflects both the fixed and variable costs of running a vehicle. The medical and moving rate reflects only variable costs, and the moving rate now applies only to active-duty Armed Forces moves under current law. The charity rate is fixed by Congress and does not move with inflation.
IRS rate vs. a custom company rate
Employers are free to set their own per-mile rate. Many simply match the IRS business rate because of how it is treated for taxes.
Under an accountable plan, reimbursement at or below the IRS rate, backed by proper records, is not taxable income to the employee. Pay above the IRS rate, or pay without documentation, can become taxable wages.
Federal law does not require most employers to reimburse mileage at all. Some states do. California, for example, requires reimbursement of necessary business expenses, which generally covers work mileage. Check your state and your company policy.
What mileage reimbursement covers (and recordkeeping)
The standard rate is meant to cover the full cost of operating your vehicle: fuel, depreciation, insurance, repairs, and maintenance. Because those costs are bundled into the rate, you generally cannot deduct them separately on top of the standard mileage rate.
Keep a log for every trip with the date, miles driven, destination, and business purpose. Clean records keep your reimbursement tax-free and make payroll faster. If you track travel hours too, our travel time pay calculator and timecard calculator pair well with this tool.
This calculator provides estimates only and is not tax or legal advice. Mileage rates and reimbursement rules change, and tax treatment depends on your specific situation. Consult the IRS or a qualified professional for guidance on your circumstances.
Frequently Asked Questions
Common questions about mileage reimbursement calculator
What is the 2026 IRS mileage reimbursement rate?
2026 has two sets of rates. From January 1 through June 30 (Notice 2026-10) the rates are 72.5 cents per mile for business, 20.5 cents for medical and qualified moving, and 14 cents for charity. Effective July 1, 2026 (Announcement 2026-11), the business rate rose to 76 cents and the medical/moving rate to 23.5 cents; charity stayed at 14 cents because it is fixed by statute. Pick the period that matches when you drove.
How do I calculate mileage reimbursement?
Multiply your total miles by the rate that applies: total miles x rate = reimbursement. For example, 500 business miles driven after July 1, 2026 is 500 x $0.76 = $380.00; the same miles driven in the first half of the year would be 500 x $0.725 = $362.50. This calculator does the math for you and lets you switch between periods and IRS rates or enter a custom company rate.
Why are there two business mileage rates for 2026?
The IRS raised the standard mileage rates mid-year in Announcement 2026-11 (Internal Revenue Bulletin 2026-29), citing a sharp rise in gasoline prices, effective July 1, 2026. Mid-year changes are rare; the last one was in 2022. If your driving spans both halves of the year, split your miles at June 30 and calculate each half at its own rate.
Is my employer required to reimburse mileage?
Federal law does not require most employers to reimburse mileage, and the IRS standard rate is a guideline rather than a federal mandate. Some states do require it. California, for instance, requires reimbursement of necessary work expenses, which generally includes business mileage. Check your state rules and company policy.
Is mileage reimbursement taxable?
Reimbursement paid under an accountable plan at or below the IRS standard rate, with proper documentation, is not taxable income. Amounts paid above the IRS rate, or reimbursement without adequate records, can be treated as taxable wages. If your pay also includes overtime, our overtime calculator can help you see the rest of your gross pay.
Can my company use a rate other than the IRS rate?
Yes. Employers can set any per-mile rate they choose. Use the Custom rate option in this calculator to enter your company's rate. Keep in mind that any amount paid above the IRS standard rate may be taxable to the employee.
What is the difference between the business, medical, and charity rates?
The business rate (72.5 cents through June 30, 2026, then 76 cents) reflects both the fixed and variable costs of running a vehicle, such as depreciation and insurance plus fuel and maintenance. The medical/moving rate (20.5 cents, then 23.5 cents from July 1) reflects only variable operating costs. The charity rate (14 cents all year) is set by statute and is much lower than the others.
Does the mileage rate cover gas, insurance, and maintenance?
Yes. The IRS standard business rate is meant to cover all operating costs of the vehicle, including fuel, depreciation, insurance, repairs, and maintenance. Because the rate already bundles these costs together, you generally cannot also deduct them separately.
What records do I need for mileage reimbursement?
Keep a log with the date of each trip, the total miles driven, the destination, and the business purpose. Good records support an accountable plan and keep reimbursement tax-free. Pairing a mileage log with a timecard makes it easier to reconcile travel against hours worked.