Mileage reimbursement calculator
Uses the 2026 IRS standard mileage rates, including the mid-year increase to 76¢ per business mile from July 1, 2026. Enter the miles for each half of the year.
Compare with what the fuel actually cost you
2026 IRS standard mileage rates
| Purpose | Jan 1 – Jun 30, 2026 | Jul 1 – Dec 31, 2026 |
|---|---|---|
| Business | 72.5¢ | 76¢ |
| Medical | 20.5¢ | 23.5¢ |
| Moving (active-duty military) | 20.5¢ | 23.5¢ |
| Charitable | 14¢ | 14¢ |
Sources: IRS Notice 2026-10 (rates from January 1) and the IRS mid-year revision announced in July 2026 (Announcement 2026-11). The charitable rate is fixed by statute.
How the rate is built
The IRS sets the business rate from an annual study of the fixed and variable costs of running a car: depreciation, insurance, repairs, tyres, maintenance, fuel and oil. It revises the rate mid-year only rarely, when fuel prices move sharply, as they did in 2026. That's why the rate is well above the fuel cost alone. To see how your own car compares, run the cost per mile calculator.
Keeping a mileage log the IRS accepts
- Record the date, destination, business purpose and miles for every trip, at or near the time of the trip.
- Note your odometer at the start and end of the year to show total versus business miles.
- Keep the log with your tax records. Estimates made later are a common reason deductions get disallowed.
This calculator gives estimates, not tax advice. Confirm your employer's policy or talk to a tax professional.
Questions drivers ask
What is the IRS mileage rate for 2026?
For business driving it is 72.5 cents per mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026, after the IRS raised it mid-year because of higher fuel prices. Medical and qualifying moving mileage went from 20.5 to 23.5 cents; charitable mileage stays at 14 cents, which is set by law.
How do I calculate mileage reimbursement?
Multiply the business miles by the rate for the period they were driven. 1,200 miles in August 2026 × $0.76 = $912. Miles before July 1 use $0.725.
Does my employer have to pay the IRS rate?
No. The IRS rate is the maximum an employer can reimburse tax-free under the standard mileage method, not a legal requirement. Some states, such as California, require employers to reimburse necessary business expenses; check your state and company policy.
Can I deduct mileage as an employee?
Generally no. Unreimbursed employee travel expenses are not deductible on federal returns. Self-employed people can deduct business mileage on Schedule C using the standard rate or actual expenses.
Is commuting reimbursable?
Normal commuting between home and your regular workplace is personal, not business, mileage under IRS rules. Trips from the office to a client, or between job sites, generally count.