Expense Reimbursement Calculator
Combine mileage at the IRS standard rate with tolls, parking and other out-of-pocket costs into one total expense reimbursement.
How it works
Mileage = miles × rate · Total reimbursement = mileage + tolls + parking + other expenses
An accountable expense reimbursement repays an employee for business costs paid out of pocket. Vehicle use is reimbursed at a cents-per-mile rate (the IRS standard business rate is a common benchmark), while tolls, parking and other direct costs are reimbursed separately at actual cost. Under an accountable plan with proper documentation, these reimbursements are tax-free to the employee.
Worked example
Driving 500 business miles at $0.67/mile gives $335 in mileage. Add $25 tolls, $40 parking and $60 of other expenses, and the total reimbursement is $460.
Sources: IRS — Standard Mileage Rates
Frequently asked questions
Are tolls and parking included in the mileage rate?
No. The IRS standard mileage rate covers fuel, maintenance, insurance and depreciation, but tolls and parking are reimbursed separately at their actual cost — which is why they are listed on their own line here.
Is an expense reimbursement taxable?
Not under an accountable plan, where the employee substantiates the business purpose and returns any excess. Reimbursements made without documentation, or as a flat allowance under a non-accountable plan, are treated as taxable wages.
What mileage rate should I use?
Many employers use the current IRS standard business rate as their reimbursement rate, but it is a maximum for tax-free treatment, not a legal minimum. Employers may set a lower rate unless state law (as in California) requires full reimbursement of actual costs.
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Educational payroll estimate, not tax, payroll or legal advice. Rules and rates vary by jurisdiction and employer — confirm with your payroll department.