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Mileage Reimbursement Calculator

๐Ÿš—
miles

Rate Type

Miles Driven In

Formula and Logic

Reimbursement = Miles Driven ร— Rate Per Mile

Enter round trip miles for each trip and leave out personal stops. At the business rate of $0.76, every 100 miles is worth $76.00.

Example Calculations

Example 1: Business driving

Inputs

Miles driven120
Rate$0.76 per mile (business, Jul to Dec 2026)
Calculation120 ร— $0.76

Result

$91.20

estimated reimbursement

Paid under an accountable plan (you log the miles and return any excess), a reimbursement at or below the IRS rate is not taxable wages, so the full $91.20 is tax free.

Example 2: Medical travel

Inputs

Miles driven60
Rate$0.235 per mile (medical, Jul to Dec 2026)
Calculation60 ร— $0.235

Result

$14.10

estimated reimbursement

The medical rate values trips for the itemized medical expense deduction, which counts only total medical costs above 7.5% of your adjusted gross income.

Example 3: Custom employer rate

Inputs

Miles driven310
Rate$0.45 per mile (example employer rate)
Calculation310 ร— $0.45

Result

$139.50

estimated reimbursement

Federal law does not require employers to pay the IRS rate. At $0.76 the same 310 miles would pay $235.60, or $96.10 more.

Mistakes That Change the Result

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Counting the drive from home to your regular workplace, which is commuting

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Using the business rate for medical or charity miles: 100 miles is $76.00 at the business rate but $23.50 at the medical rate

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Entering the one way distance for a trip you drove there and back

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Using one period for all of 2026: the rates changed on July 1, so price each trip at the rate for the date it was driven

Frequently Asked Questions

How is mileage reimbursement calculated?
Miles driven times the rate per mile, using the rate for when the miles were driven. At the IRS business rate for miles driven July 1 to December 31, 2026 ($0.76), 250 miles is 250 x $0.76 = $190.00. The same miles driven January 1 to June 30, 2026 were worth $181.25 at $0.725.
Did the IRS mileage rate change on July 1, 2026?
Yes. Because of higher fuel prices, the IRS raised the business rate from $0.725 to $0.76 and the medical rate from $0.205 to $0.235 for miles driven on or after July 1, 2026 (Announcement 2026-11). The charitable rate stayed at $0.14. Pick the period the miles were driven in under Miles Driven In and the calculator uses that period's rate.
Is mileage reimbursement taxable?
Not when your employer pays it under an accountable plan, where you record the date, destination, business purpose and miles of each trip and return any excess, and the rate is at or below the IRS business rate for the period the miles were driven. Any amount above that rate is taxable wages: at an employer rate of $0.80, $0.04 of every mile driven July 1 to December 31, 2026 is taxable, and $0.075 of every mile driven January 1 to June 30, 2026. A flat car allowance paid without a mileage log is taxable wages in full.
Does my employer have to pay the IRS rate?
No. Federal law does not require employers to pay the IRS rate; it only sets how much of a per mile allowance is tax free. At an employer rate of $0.45, 310 miles pays $139.50, compared with $235.60 at the IRS business rate of $0.76 for miles driven July 1 to December 31, 2026.
Is commuting to my regular workplace reimbursable?
Under IRS rules, driving between home and your regular workplace is commuting, a personal expense, so it is not business mileage. Trips from your workplace to a client, between two work locations, or from home to a temporary work site when you also have a regular workplace are business miles.
Does the mileage rate cover gas, tolls and parking?
The IRS rate covers the full cost of running the car, including gas, oil, repairs, tires, insurance, registration and depreciation, so do not add fuel receipts on top. Business tolls and parking fees are not part of the rate. They can be reimbursed separately, and on a tax return they are deducted in addition to the standard mileage amount.
What rate applies to medical or charity driving?
For miles driven July 1 to December 31, 2026, medical driving is $0.235 per mile and volunteer driving for a qualified charity is $0.14, a rate fixed by law. A 60 mile trip is worth $14.10 at the medical rate, $8.40 at the charitable rate and $45.60 at the business rate. Before July 1 the medical rate was $0.205, so the same trip was worth $12.30.

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