Mileage reimbursement calculator
Mileage reimbursement = business miles × rate per mile, plus parking and tolls. At the 2026 IRS rate, 420 miles driven on or after July 1 come to 420 × $0.76 = $319.20; miles driven before July 1 use $0.725.
On this page (7 sections)
Enter your miles and when you drove them. The calculator uses the IRS rate for those dates, or your company’s own rate if you type one in. This is not tax advice: your employer’s policy decides what it pays.
The formula, with examples
The math is the same for every rate:
Reimbursement = miles × rate per mile + parking + tolls
| Miles | Rate | Parking and tolls | Reimbursement |
|---|---|---|---|
| 420 (on or after July 1, 2026) | IRS, 76¢ | $18.00 | $337.20 |
| 420 (before July 1, 2026) | IRS, 72.5¢ | $18.00 | $322.50 |
| 420 | Company rate, 65¢ | $18.00 | $291.00 |
| 100 | IRS 2025, 70¢ | — | $70.00 |
Write the rate in dollars when you multiply: 76 cents is $0.76, and 72.5 cents is $0.725.
Trips on both sides of July 1, 2026
The IRS raised its business rate from 72.5 to 76 cents a mile on July 1, 2026 (Announcement 2026-11). If your expense report covers late June and early July, split the miles by date:
- 200 miles from June 15 to June 30: 200 × $0.725 = $145.00
- 220 miles from July 1 to July 15: 220 × $0.76 = $167.20
- Total for 420 miles: $312.20
The IRS rule follows the date of the driving: the new rate is for expenses paid or incurred on or after July 1. All rates by date are on the IRS mileage rate page.
Which rate to use
- Your employer’s policy rate. If you are an employee, this is the rate that counts. Many employers use the IRS business rate; some use a lower or higher one.
- The IRS business rate for 2026: 72.5 cents through June 30, 76 cents from July 1. Self-employed people use it for the mileage deduction.
- The GSA rate if you are a federal employee on official travel. It is also 76 cents for a car from July 1, 2026. See the GSA mileage rate.
Some states have their own rules on paying back work expenses. If your employer pays nothing or much less than the IRS rate, check with your state’s labor department. See mileage reimbursement laws by state.
What the rate covers: gas and more
A per-mile rate is meant to cover all the costs of driving, not only gas. The IRS business rate covers gas, oil, maintenance and repairs, insurance, registration fees, and depreciation or lease payments (IRS Publication 463). Parking fees and tolls for the trip are separate, which is why the calculator adds them on top.
Gas is usually the smaller part. For example, a car that gets 25 MPG with gas at $3.00 a gallon spends 12 cents a mile on gas ($3.00 ÷ 25). The other 64 cents of a 76-cent rate cover wear, insurance, and the car’s loss in value. To work out your own number, use the gas cost per mile calculator. Splitting gas with friends on a trip is a different question: see the gas money calculator.
Records your employer will ask for
To keep a reimbursement tax-free, an employer’s accountable plan requires you to report your trips, with dates, places, and business purpose, within a reasonable time (IRS Publication 463, chapter 6). For each trip, write down:
- the date,
- where you went,
- why (the business purpose),
- the miles, from odometer readings or a map route.
Our free mileage log template has these columns. What the IRS asks for, in detail, is in how to track mileage for taxes.
Ready to claim? Our free mileage reimbursement form has trip lines, both 2026 rates, and sign-off lines. When a payment is tax-free is covered in employee mileage reimbursement rules, and what California employers must pay in California mileage reimbursement.
FAQ
How do you calculate mileage reimbursement?
Multiply your business miles by the rate per mile, then add parking and tolls. Example: 250 miles × $0.76 = $190.00. If the miles fall on both sides of a rate change, multiply each part by its own rate.
Does mileage reimbursement include gas?
Yes. A per-mile rate such as the IRS rate is meant to cover gas and the other costs of driving, so you don’t claim gas on top. Parking and tolls are usually paid separately.
Can an employer pay less than the IRS rate?
The IRS doesn’t set what an employer must pay; it only sets the rate used for taxes. Your company’s policy and your state’s law decide the minimum. Ask HR for the written mileage policy.
Is a reimbursement above the IRS rate taxed?
The part above the IRS rate is. In an IRS example, an employee paid 75 cents a mile for 10,000 miles in 2025, when the rate was 70 cents, gets $7,000 tax-free and $500 added to wages on the W-2.