Mileage Reimbursement Calculator — Free Online Calculator & Guide

How Mileage Reimbursement Works

Reimbursement = Miles × Rate + Additional Expenses

The IRS standard mileage rate is a simplified method for calculating deductible vehicle costs. Multiply your business miles by the IRS rate, then add any tolls or parking fees.

Miles

Total Miles — The number of miles driven for business, medical, moving, or charitable purposes.

Rate

Standard Mileage Rate — The per-mile rate set by the IRS for the tax year. Varies by use type and year.

Expenses

Additional Expenses — Tolls, parking fees, and other vehicle-related expenses separate from mileage.

How to Use

1. Enter the total miles driven for the eligible purpose.
2. Select the mileage type (Business, Medical/Moving, or Charitable).
3. Choose the tax year to apply the correct rate.
4. Optionally add tolls, parking, or other expenses.
5. Read your total reimbursement and estimated tax savings.

Understanding the Result

The IRS standard mileage rate simplifies vehicle expense deduction. Instead of tracking actual costs (gas, repairs, insurance, depreciation), you multiply your business miles by the IRS rate. For 2026, the business rate is $0.655 per mile. Self-employed individuals can deduct this on Schedule C, reducing their taxable income. Practical example: a real estate agent drives 15,000 business miles in 2026. The mileage deduction is 15,000 × $0.655 = $9,825. If they also paid $200 in tolls and $150 in parking, the total deduction is $10,175. At a 30% marginal tax rate, this saves approximately $3,053 in taxes. Edge cases: for rideshare drivers (Uber, Lyft), the distinction between personal and business miles is critical — only miles driven while the app is on and you are actively working count as business miles. Miles driven to the first pickup location are not deductible as business miles (they are commuting miles). If you use the standard mileage rate in the first year of vehicle ownership, you cannot switch to actual expenses in later years. For a vehicle leased for business use, you must use the standard mileage rate for the entire lease period. Medical mileage includes trips for medical care, dental visits, and pharmacy runs — but the 7.5% of AGI floor for medical expenses applies. Charitable mileage is only deductible if you itemize deductions on Schedule A. For mixed-use vehicles (personal and business), keep a detailed mileage log showing date, purpose, starting and ending odometer readings for each business trip.

Frequently Asked Questions

What is the standard mileage rate for 2026?

The 2026 IRS standard mileage rate for business use is $0.655 per mile. The medical/moving rate is $0.21 per mile, and the charitable rate is $0.14 per mile.

Can I use both actual expenses and standard mileage?

For leased vehicles, you must use the standard mileage rate for the entire lease period. For owned vehicles, you can choose either method in the first year, but switching later is restricted.

What counts as additional expenses?

Tolls and parking fees are separately deductible on top of the mileage rate. Other costs like gas, insurance, and repairs are covered by the standard mileage rate.

Is the mileage rate the same for all purposes?

No. Business rates are the highest. Medical and moving have a lower rate, and charitable mileage has the lowest rate. The rates are updated annually by the IRS.

Do I need a mileage log, and what should it contain?

Yes, the IRS requires a contemporaneous mileage log (recorded at or near the time of the trip) for all business mileage deductions. Your log should include the date of each trip, the starting and ending odometer readings, the total miles driven, the destination and purpose of each trip, and the business relationship of anyone you met with. For mixed-use vehicles, you must separate business and personal miles — commuting miles (travel between home and a regular workplace) are not deductible. The IRS accepts electronic logs, mileage tracking apps, or paper logs. Apps like MileIQ, Stride, and QuickBooks Self-Employed can automate GPS-based mileage tracking and generate IRS-compliant reports. If you are audited, the IRS will expect to see a complete log for the entire tax year, not just a sample. For employees using the actual expense method (not standard mileage), you also need records of all vehicle-related expenses: gas, oil changes, tires, repairs, insurance, registration fees, lease payments, and depreciation. The standard mileage rate simplifies this by bundling all costs into a single per-mile rate, but you still need the mileage log to substantiate the business use percentage.

Sources

• Standard Mileage Rate
• IRS Mileage Rates