Mileage Reimbursement Calculator
This mileage reimbursement calculator multiplies the miles you drove by a rate per mile. The rate is pre-filled with the IRS standard mileage rate for business use that applies from 1 July 2026: 76 cents. Example: 1,000 miles pay $760.00.
Example: Miles driven 1,000 miles · Rate per mile 76 cents · Tolls and parking 0 $ → Reimbursement: Reimbursement = $760.00 (1,000 miles × 76¢). Source: Announcement 2026-11, Notice 2026-10, IRS – Standard mileage rates (2026: 76¢ business from 1 July, Announcement 2026-11 in I.R.B. 2026-29; 72.5¢ January to June, IR-2025-128 / Notice 2026-10; medical 23.5¢ / 20.5¢; charity 14¢); retrieved 4 Oct 2026. Updated: .
How it is calculated
Mileage reimbursement is the amount paid for using your own car for work, charity or medical trips: miles driven × rate per mile. Most US employers use the IRS standard mileage rate because reimbursements up to that rate, paid under an accountable plan, are not taxed as wages.
2026 IRS standard mileage rates
The IRS set two sets of rates for 2026. From 1 January to 30 June: 72.5 cents per mile for business, 20.5 cents for medical trips and military moves, 14 cents for charity. From 1 July to 31 December: 76 cents for business and 23.5 cents for medical and military moving; charity stays at 14 cents because that rate is fixed by law. Use the rate that was in force on the day of the trip.
Formula and worked example
Reimbursement = miles × rate ÷ 100 (rate in cents) + tolls and parking. For 1,000 business miles in the second half of 2026: 1,000 × $0.76 = $760.00. With $25.00 of tolls the claim comes to $785.00. The same 1,000 miles driven before July pay $725.00; as medical mileage they count $235.00 (July to December) or $205.00 (January to June), and for a charity $140.00.
What the rate covers
- The business rate stands for fuel, oil, tyres, repairs, insurance, registration and depreciation. Tolls and parking are claimed separately.
- Commuting between home and your regular workplace does not count as business mileage.
- Keep a log: date, destination, purpose and miles for every trip. Without records a reimbursement or deduction can be refused.
- Self-employed people may deduct business miles at the same rate instead of actual car costs.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business use it is 72.5 cents per mile from 1 January to 30 June 2026 and 76 cents from 1 July to 31 December 2026. Medical and military-moving mileage is 20.5 cents, then 23.5 cents; charity mileage is 14 cents all year.
How do I calculate mileage reimbursement?
Multiply the miles by the rate per mile. 1,000 miles at 76 cents are 1,000 × $0.76 = $760.00.
How much is 12,500 miles worth at 72.5 cents?
12,500 × $0.725 = $9,062.50. Set the rate field to 72.5 for trips made in the first half of 2026.
Does my employer have to pay the IRS rate?
No federal law requires it. The IRS rate is the ceiling for tax-free reimbursement, not a minimum; some states, such as California, do require employers to cover work-related vehicle costs.
Are tolls and parking included in the rate?
No. They are added on top: 1,000 miles plus $25.00 in tolls come to $785.00.
Sources and legal basis
- Announcement 2026-11, Notice 2026-10: IRS – Standard mileage rates (2026: 76¢ business from 1 July, Announcement 2026-11 in I.R.B. 2026-29; 72.5¢ January to June, IR-2025-128 / Notice 2026-10; medical 23.5¢ / 20.5¢; charity 14¢); retrieved 4 Oct 2026
- Announcement 2026-11: IRS – Internal Revenue Bulletin 2026-29, Announcement 2026-11: revised optional standard mileage rates effective 1 July 2026 (business 76¢, medical and moving 23.5¢; charity fixed at 14¢ by §170(i))
- Topic 510: IRS Topic no. 510 – Business use of car (standard mileage rate vs. actual expenses)
As of: · Editorial policy
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