Mileage Reimbursement Calculator (2026 IRS Rate: 76¢ a Mile)
Work out a mileage reimbursement or deduction from your business miles or trips and the 2026 IRS standard mileage rate (76 cents a mile from July 1, 72.5 cents before), or your employer’s rate. Exclude commute miles, add parking and tolls, project a yearly total and compare it with your real fuel cost.
How it works
Reimbursement = (miles driven − non-reimbursable miles) × rate per mile + parking and tolls · Trips: miles = one-way distance × 2 (round trip) × number of trips
A mileage rate bundles fuel, maintenance, tires, insurance and depreciation into one amount per mile, so employers can reimburse driving and self-employed people can deduct it without tracking every receipt. Multiply the business miles by the rate. Only business miles count: a normal commute between home and your regular workplace is personal, so enter those miles as non-reimbursable. The IRS standard mileage rate for business is 76 cents a mile from July 1, 2026, after a mid-year increase from 72.5 cents (January 1 to June 30, 2026). The medical and military moving rate rose from 20.5 to 23.5 cents, and the charity rate stays at 14 cents, which is set by law. The table under the results shows your distance at each of these rates; enter your employer’s rate instead if it uses its own. Business parking fees and tolls are claimed on top of the standard mileage rate, so add them under More options. You can also enter the distance as a number of trips, project a yearly total, and compare the reimbursement with what the fuel for those miles actually costs.
Worked example
An employee drives 500 business miles in October 2026. At the IRS rate of $0.76 a mile, the reimbursement is 500 × 0.76 = $380.00. If 50 of those miles were personal, only 450 count: 450 × 0.76 = $342.00. The same 500 miles driven in March 2026, at $0.725 a mile, would come to $362.50.
Sources: IRS: Standard mileage rates (2026 first and second half, 2025) · IRS IR-2025-128: 2026 business rate 72.5 cents (Notice 2026-10) · IRS Topic 510: Business use of car (parking and tolls, who can deduct) · Omni Calculator: Mileage reimbursement calculator
Frequently asked questions
What is the IRS mileage rate for 2026?
The IRS raised the 2026 rates in the middle of the year. Business driving is 72.5 cents a mile from January 1 to June 30, 2026 and 76 cents a mile from July 1 to December 31, 2026. Medical and military moving miles are 20.5 cents, then 23.5 cents; charity miles stay at 14 cents. For 2025 the business rate was 70 cents.
Is my commute reimbursable?
Generally no. Driving between your home and your regular place of work is a personal commute. Trips from your workplace to clients, job sites or other business locations count, and so can trips from home to a temporary work location.
Can I claim parking and tolls as well as mileage?
Yes. The IRS says business parking fees and tolls are separately deductible whether you use the standard mileage rate or actual expenses. Parking at your regular workplace is a commuting cost and does not count.
Can I deduct mileage if my employer does not reimburse me?
Most employees cannot deduct unreimbursed car expenses on their federal return; the IRS lists exceptions such as Armed Forces reservists, qualified performing artists and fee-basis government officials. Self-employed people deduct business miles on Schedule C.
Is a mileage reimbursement taxable?
A reimbursement paid under an accountable plan at or below the IRS rate, backed by a mileage log, is generally not taxable income. If the employer pays more than the IRS rate, the excess is usually treated as taxable wages.
Does the mileage rate cover more than gas?
Yes. The rate is meant to cover all the costs of running the car, including depreciation, insurance, repairs, tires and fuel. Turn on the fuel comparison under More options to see how much of the payment your fuel actually uses.
Related calculators
IRS rates change and employer policies differ; confirm the rate for the dates you drove and your eligibility. Not tax advice.