Mileage reimbursement with the IRS standard rates
Using your own car for work comes with real costs: fuel, wear, insurance and the value the car loses with every mile. Instead of tracking each of those expenses, most employers and self-employed people use the IRS standard mileage rate, a single figure per mile that is meant to cover them all. This calculator multiplies your miles by the right rate for 2026 and compares the result with what driving actually costs you.
The 2026 rates
The IRS raised its rates in the middle of 2026, so the date of each trip matters.
| Purpose | January 1 to June 30, 2026 | From July 1, 2026 |
|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile |
| Medical, military moving | 20.5¢ per mile | 23.5¢ per mile |
| Charity | 14¢ per mile | 14¢ per mile |
The charity rate is set by law rather than by the IRS, which is why it does not change. If your log covers the whole year, run the calculator twice, once for the miles before July 1 and once for the miles after, and add the two results.
The formula
Reimbursement = miles driven × rate per mile.
Parking fees and tolls for business trips are not part of the rate and are reimbursed or deducted on top of it.
Worked example
You drove 8,000 business miles after July 1, 2026.
- Reimbursement: 8,000 × $0.76 = $6,080, or about $507 a month over a year.
- If your actual cost is 25¢ a mile, roughly the fuel cost of an average car, the rate leaves a $4,080 margin. With depreciation, insurance and maintenance included, real costs are often 60 to 80 cents a mile, which is closer to what the rate is designed to cover.
| Miles | Reimbursement at 76¢ | Per month |
|---|---|---|
| 1,000 | $760 | $63 |
| 5,000 | $3,800 | $317 |
| 12,000 | $9,120 | $760 |
| 20,000 | $15,200 | $1,267 |
Who can use the rate
- Employees reimbursed by their employer. Under an accountable plan, which requires a mileage log and timely reporting, reimbursement at or below the IRS rate is not taxable. Employers may also pay a different rate; select Custom rate to enter it.
- Self-employed people and small business owners deduct business miles on Schedule C. To use the standard rate on a car, you generally need to choose it in the first year you use that car for business.
- Employees who are not reimbursed generally cannot deduct their miles on their federal return: that deduction was suspended in 2018 and remains unavailable for most W-2 workers.
Keeping a good mileage log
For each trip, note the date, the starting point and destination, the business purpose and the miles driven. A phone app that records trips automatically works, as long as you classify each trip. Commuting between your home and your regular workplace is personal driving and does not count as business miles, even if you take work calls on the way.