Mileage Reimbursement Calculator

One rate, three purposes

The IRS publishes separate standard mileage rates each year. The business rate is by far the largest because it is built to cover the full cost of operating a vehicle — fuel, maintenance, tyres, insurance and depreciation. The medical and moving rate covers variable costs only, and the charitable rate is fixed by statute rather than recalculated annually, which is why it has stayed unchanged for decades and sits far below the others.

The standard rate is an average, not your cost

A fuel-efficient paid-off car often costs well under the business rate per mile, so reimbursement at the standard rate leaves you ahead. A large vehicle with poor economy, high insurance and rapid depreciation can cost more than the rate returns. The comparison above makes that visible: if the gap is negative, driving for work is costing you money.

Employees versus the self-employed

Since 2018, unreimbursed employee business expenses are no longer deductible on federal returns for most workers, so an employee whose employer reimburses below the standard rate cannot deduct the shortfall. The self-employed can still deduct business mileage on Schedule C, choosing between the standard rate and actual expenses. Both require a contemporaneous log of dates, mileage and business purpose.

Commuting is not business mileage

The drive between home and your regular workplace is personal commuting, not deductible or reimbursable business mileage, no matter how far it is. What does count is travel between work locations, to a temporary work site, or to visit clients — and mileage from a qualifying home office to a work site, since the office is then the principal place of business. This distinction is one of the most commonly audited areas in small-business returns, which is why the log matters as much as the arithmetic. Record the purpose alongside the miles, not just the total.

Frequently Asked Questions