If you use your personal vehicle for business purposes, you may be entitled to a mileage reimbursement from your employer or be able to deduct the mileage on your taxes if you're self-employed. The IRS sets a standard mileage rate each year to make this process simple. Our Mileage Reimbursement Calculator helps you quickly calculate the value of your business travel, ensuring you get the correct reimbursement amount and keep accurate records for your financial and tax-planning needs.
How to Use the Mileage Reimbursement Calculator
Calculating your reimbursement is fast and easy. Here’s all you need to do:
- Enter Business Miles: Input the total number of miles you drove for business purposes.
- Enter Reimbursement Rate: The calculator defaults to the current standard IRS rate. You can adjust this if your employer uses a different rate.
- Calculate Your Reimbursement: Click the "Calculate" button to see the total reimbursement amount you are owed.
Understanding Mileage Reimbursement
When you use your personal car for work, you incur costs beyond just gasoline. You're also paying for insurance, maintenance, repairs, and the general wear and tear that depreciates your vehicle's value. A mileage reimbursement is designed to compensate you for all these expenses in a simplified way.
The IRS Standard Mileage Rate
To simplify record-keeping for both employers and employees, the IRS establishes a standard mileage rate each year. For 2024, the rate for business travel is 67 cents per mile. This rate is carefully calculated by the IRS based on an annual study of the fixed and variable costs of operating a vehicle, including gas, oil, maintenance, insurance, and depreciation. Using this standard rate means you don't have to save and tally up every single receipt for gas or oil changes.
Is Mileage Reimbursement Taxable?
Generally, no. When an employer reimburses you for mileage under an "accountable plan," the money you receive is not considered taxable income. An accountable plan is a set of rules employers must follow to ensure the reimbursement is a legitimate business expense. The core requirements are:
- The expenses must have a business connection.
- You must adequately account for these expenses to your employer within a reasonable time period. This usually means submitting a mileage log.
- You must return any excess reimbursement or allowance within a reasonable time.
If your employer's reimbursement rate is higher than the IRS standard rate, the excess amount may be considered taxable income.
Record-Keeping: The Key to Reimbursement
Whether you're getting reimbursed by an employer or deducting miles as a self-employed individual, the IRS requires that you keep accurate and contemporaneous records. You can't just estimate your miles at the end of the year. Your mileage log should include:
- The date of each trip.
- Your starting and ending odometer readings, or just the total miles for the trip.
- The business purpose of the trip (e.g., "Client meeting with XYZ Corp").
- The starting point and destination of your travel.
Many smartphone apps are available today that use GPS to automatically track your drives and help you categorize them as business or personal, which can significantly simplify this process.
Frequently Asked Questions
What counts as "business mileage"?
Business mileage includes driving between two different workplaces, visiting clients or customers, going to a business meeting away from your regular workplace, and running business-related errands like going to the bank or post office. Commuting miles—the drive from your home to your main place of work and back—are generally considered personal miles and are not reimbursable or deductible.
Can I deduct mileage if my employer doesn't reimburse me?
Following the Tax Cuts and Jobs Act of 2017, W-2 employees can no longer deduct unreimbursed employee business expenses, including mileage, on their federal tax returns. This deduction was eliminated from 2018 through 2025. However, if you are self-employed (an independent contractor, freelancer, or gig worker), you can—and should—deduct your business mileage as a business expense on your Schedule C.
What is the "Actual Expense Method"?
Instead of using the standard mileage rate, you can choose to track all of the actual costs of operating your car for business purposes. This includes gas, oil, repairs, tires, insurance, registration fees, and depreciation. You would then calculate the percentage of your total miles that were for business and deduct that percentage of your total costs. This method is much more burdensome and requires meticulous record-keeping, so most people find the standard mileage rate to be simpler and more advantageous.
Are there different rates for other types of driving?
Yes. The IRS sets different standard rates for different purposes. For 2024, the rate for medical or moving purposes is 21 cents per mile, and the rate for driving in service of charitable organizations is set by statute at 14 cents per mile.