How to use the mileage reimbursement calculator
- 1 Enter the miles driven.
- 2 Choose the purpose: business, medical or charity.
- 3 Choose when the miles were driven: the first or second half of 2026.
- 4 Enter what your employer pays per mile, if anything, and read the result.
Worked example
1,200 business miles driven in the second half of 2026. At the IRS rate of 76 cents a mile, the amount is $912. The same miles before July 1 would be $870 at 72.5 cents. If your employer pays 60 cents a mile ($720), you receive $192 less than the IRS rate.
Getting paid for every mile
- Log trips as you go with date, purpose and miles.
- Use the right half-year rate for 2026.
- Submit expense reports on time under your employer's plan.
- Self-employed? Deduct miles on Schedule C.
Compare with fuel costs in the Gas Cost Calculator, see business tax with the Self-Employment Tax Calculator, and weigh contracting in the 1099 vs W-2 Calculator.
Features
2026 rates
72.5¢ then 76¢ business, 20.5¢ then 23.5¢ medical, 14¢ charity.
Employer check
Compares your reimbursement with the IRS rate.
Taxable part
Shows any reimbursement above the IRS rate.
When to use it
Self-employed drivers
Deduct business miles on Schedule C. See your tax with the Self-Employment Tax Calculator.
Employees
Check your expense report. See take-home pay with the Paycheck Calculator.
Fuel costs
Compare with actual fuel spending using the Gas Cost Calculator.
Contractors
Count car costs when comparing with a job in the 1099 vs W-2 Calculator.
Related Pay and Salary tasks
Frequently asked questions
What is the IRS mileage rate for 2026?
72.5 cents a mile for business driving from January 1 to June 30, 2026, and 76 cents from July 1 to December 31, 2026. Medical and military moving miles are 20.5 cents, then 23.5 cents. Charity miles are 14 cents all year.
Why did the rate change in July 2026?
The IRS raised the rates mid-year because of higher fuel prices, the first mid-year increase since 2022. Use the rate for the date each mile was driven.
Is mileage reimbursement taxable?
Not if your employer has an accountable plan and pays no more than the IRS rate with a mileage log. Anything above the IRS rate, or a flat car allowance without records, is taxable wages.
Do employers have to pay mileage?
Federal law does not require it unless unreimbursed costs push your pay below minimum wage. Some states, including California, Illinois and Massachusetts, require employers to reimburse necessary business expenses.
Can employees deduct unreimbursed mileage?
Not on a federal return: the deduction for unreimbursed employee expenses was eliminated permanently. Some groups, such as armed forces reservists and certain educators, are exceptions.
Who can deduct business mileage?
Self-employed people and business owners, on Schedule C or their business return, using either the standard rate or actual costs.
Does commuting count as business mileage?
No. Driving between home and your regular workplace is commuting. Trips from work to a client, between job sites, or to a temporary work location usually count.
What records do I need?
A log with the date, destination, business purpose and miles for each trip, kept at the time. Mileage apps work well.
When can I deduct medical miles?
Medical miles count toward itemized medical expenses, deductible only above 7.5% of your adjusted gross income.
Can I use the standard rate for a leased car?
Yes, but if you choose it for a leased car you must use it for the whole lease period.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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