Free tool · No sign-up

Mileage reimbursement calculator with the 2026 IRS rate

The short answer

To work out mileage reimbursement, multiply business miles by the rate. The IRS business rate is 76 cents a mile from July 1 to December 31, 2026, and 72.5 cents from January 1 to June 30. So 20 round trips of 24 miles is 480 miles, or $364.80 at 76 cents. Use your own policy’s rate if it’s different.

For owners paying staff back for driving their own cars, and for anyone adding up business miles. Enter the trip and the count, or just the total with 1 trip.

Checked November 5, 2026. How we make these tools

Mileage reimbursement

$364.80

480 miles at 76 cents a mile.

How it works

IRS standard mileage rates, in cents per mile. Page reviewed July 28, 2026
Use	Jan 1 to June 30, 2026	July 1 to Dec 31, 2026	2025
Business	72.5	76	70
Medical or military moving	20.5	23.5	21
Charity	14	14	14

Sources: IRS standard mileage rates (opens in a new tab) and Announcement 2026-11 (opens in a new tab), which raised the rates from July 1 because of fuel prices. Work out miles from each half of the year separately.

Reimbursement at 76 cents a mile
Miles	Amount
50	$38.00
100	$76.00
250	$190.00
500	$380.00
1,000	$760.00

Keep a log

For each trip, write down the date, where you went, why and the miles. Put totals on an expense report with any tolls and parking on their own lines. The rate is optional for a business owner’s own car, and the IRS sets conditions (opens in a new tab), such as owning or leasing the car and running fewer than five at once. Most employees can’t deduct car costs you don’t pay back. Ask your accountant how it applies to you.

The IRS rate is a standard for taxes. A business can pay a different rate, though state rules can apply, so check yours.

Common questions

How do I calculate mileage reimbursement?

Multiply business miles by the rate per mile. 300 miles at 76 cents is $228.

What is the 2026 mileage reimbursement rate?

The IRS business rate is 72.5 cents a mile from January 1 to June 30, 2026, and 76 cents from July 1 to December 31, 2026.

Why did the rate change in the middle of 2026?

The IRS raised it for the second half of the year, citing fuel prices. Use 72.5 cents for miles before July 1 and 76 cents from then on.

Do I have to pay employees for mileage?

It depends on where you are and on your policy. Some states go further than federal law: California’s Labor Code 2802, for one, requires employers to cover necessary work expenses. Under federal rules, work costs can’t push pay below minimum wage. Check your state and write your policy down.

Can I pay less or more than the IRS rate?

Businesses can set their own rate, within state rules. Ask your accountant how a rate above the IRS’s is treated for taxes.

More free tools

Expense report template
List expenses, take off any advance and get it signed.
Time card calculator
Add up a week of clock-in and clock-out times, with breaks, overtime and pay.
Employee cost calculator
What an employee really costs: pay, taxes, insurance, benefits and time off.

Time and your team

See all free tools

On the road between jobs?

CoveDesk answers your business calls while you’re driving and texts you who called and what they need.

Talk to us See pricing