Mileage Reimbursement Calculator — IRS Standard Rate
Calculate how much you are owed for business driving. Enter the rate per mile (defaulting to the 2025 IRS standard rate of $0.70/mile) and your mileage to get a lump-sum reimbursement and a weekly-to-annual projection.
$/mile
miles
trips/wk
miles
Miles driven × rate per mile
- 1
Miles driven
500 - 2
Rate per mile
$0.7 - 3
Reimbursement
500 × 0.7 = 350
How does this calculator work?
Multiply business miles driven by the reimbursement rate to get the payout. At the 2025 IRS rate of $0.70/mile, 500 miles = $350. The IRS rate is updated annually (and sometimes mid-year); adjust the rate field to match your employer policy or country. Reimbursements at or below the IRS rate are generally not taxable.
Formula
How this is calculated
Mileage reimbursement compensates employees or contractors for using a personal vehicle for business purposes. In the US, the IRS publishes an annual Standard Mileage Rate (SMR) that many employers use as a reference. For 2025, the business SMR is $0.70 per mile. This figure is updated by the IRS each year (and sometimes mid-year) to reflect changes in fuel costs, insurance and vehicle depreciation, so always check the current IRS publication if accuracy matters. The 2025 value of $0.70/mile is pre-filled as an editable estimate.
The reimbursement formula is straightforward: multiply the number of miles driven by the agreed rate. This calculator also accepts trip frequency inputs (trips per week and miles per trip) to project weekly, monthly and annual reimbursement amounts — useful for budgeting recurring travel such as client site visits or field service routes.
Note that different countries and employers may use different rates, and some differentiate between the first and subsequent miles in a year (e.g. HMRC in the UK uses £0.45/mile for the first 10,000 miles and £0.25 thereafter). This calculator uses a single flat rate; adjust the rate field to match your policy. Reimbursements at or below the IRS SMR are generally not taxable income; amounts above the rate may be.
Frequently asked questions
The IRS standard mileage rate for 2025 business use is 70 cents ($0.70) per mile, effective January 1, 2025. This rate is set by the IRS each year and covers fuel, depreciation, maintenance, and insurance on a per-mile basis. Always verify the current rate at irs.gov as it can change mid-year.
In the US, mileage reimbursements that do not exceed the IRS standard rate are generally not considered taxable income, provided you submit an adequate accounting (receipts or a mileage log) under an accountable plan. Reimbursements above the IRS rate or paid without documentation are typically taxable.
The IRS requires a contemporaneous mileage log with the date, destination, business purpose, and miles driven for each trip. A smartphone mileage-tracking app or a paper log kept in the vehicle works. Without records, reimbursements may be disallowed in an audit.
Also known as
TG we-Calculate Editorial Team. (2026). Mileage Reimbursement Calculator — IRS Standard Rate [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/mileage-reimbursement-calculator
TG we-Calculate Editorial Team. "Mileage Reimbursement Calculator — IRS Standard Rate." TG we-Calculate. 2026. https://we-calculate.com/calculator/mileage-reimbursement-calculator.
TG we-Calculate Editorial Team, "Mileage Reimbursement Calculator — IRS Standard Rate," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/mileage-reimbursement-calculator
@misc{wecalculate_mileage_reimbursement_calculator, title = {Mileage Reimbursement Calculator — IRS Standard Rate}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/mileage-reimbursement-calculator}}, year = {2026}, note = {TG we-Calculate} }
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