How mileage reimbursement is calculated
Add each trip with its one-way distance and tick Round trip if you drove there and back — the calculator doubles it for you. Use Times for trips you repeat, such as a weekly client visit.
The IRS standard mileage rate
The IRS sets a standard mileage rate each year that businesses commonly use for reimbursement and self-employed people can use to deduct business driving. For 2025 the business rate was 70 cents per mile. Separate, lower rates apply to medical and moving miles and to driving for charity. Check irs.gov for the current year's rates and replace the rate above if needed.
Commuting between your home and your regular workplace generally doesn't count as business mileage. Many employers use their own rate — use theirs if you're filling in an expense report.
Keep a record
If you claim mileage on your taxes, the IRS expects a log showing the date, destination, purpose and miles of each trip. Use Download CSV to save this trip list as a spreadsheet for your records. To estimate what the trips cost you in fuel, try the Gas Mileage & Fuel Cost Calculator.
Reimbursement at 70 cents per mile
| Miles driven | Reimbursement |
|---|---|
| 10 | $7.00 |
| 25 | $17.50 |
| 50 | $35.00 |
| 100 | $70.00 |
| 500 | $350.00 |
| 1,000 | $700.00 |
Worked example
In one week you drive to a client 18 miles away and back (36 miles), make a 6.5-mile supply run and return (13 miles), and take a one-way 42-mile trip to a job site. That's 36 + 13 + 42 = 91 miles. At 70 cents a mile the reimbursement is 91 × $0.70 = $63.70. If you also paid $12 in tolls and parking, the total claim is $75.70.
Frequently asked questions
What does the mileage rate cover?
The standard rate is meant to cover all the costs of running your car: fuel, oil, tires, maintenance, repairs, insurance, registration and depreciation. That's why you can't claim both the mileage rate and your actual fuel receipts for the same miles. Tolls and parking are separate and can be added on top.
Does commuting count as business mileage?
Generally not. Travel between your home and your regular place of work is personal commuting. Trips from your workplace to clients, between job sites, or to a temporary work location usually do count.
Is mileage reimbursement taxable?
In the U.S., reimbursement at or below the IRS standard rate under an employer's accountable plan is generally not taxable income. Amounts paid above the standard rate are usually treated as taxable wages.
Standard mileage rate or actual expenses?
Self-employed people can usually choose between deducting the standard rate per mile or their actual vehicle costs multiplied by the business-use percentage. The standard rate is far simpler; actual expenses can be worth more for costly vehicles driven relatively few miles. There are rules about switching between methods, so check with a tax professional.
What records should I keep?
For each trip: the date, where you went, the business purpose and the miles driven. Recording your odometer reading at the start and end of the year is also good practice. Use the Download CSV button to save your trip list.