Estimate travel reimbursement payouts or tax deductions using standard IRS mileage rates or custom company policy rates.
A mileage reimbursement is computed by multiplying the total qualifying miles driven in your personal vehicle by either standard government rate allocations (like IRS guidelines in the United States) or custom company expense policies.
To calculate a mileage reimbursement inside Excel or Google Sheets (assuming cell A1 contains starting odometer, cell B1 has ending odometer, and cell C1 contains the mileage rate):
=(B1 - A1) * C1 (Reimbursement Payout Total)
This table compares standard US IRS per-mile standard rates across the 2025 and 2026 tax periods:
| Mileage Use Type | 2025 Tax Year Standard Rates | 2026 Tax Year Standard Rates | Trend Direction |
|---|---|---|---|
| Business Driving | 70.0 ¢ / mile ($0.70) | 72.5 ¢ / mile ($0.725) | Up 2.5 ¢ / mile |
| Medical & Moving | 21.0 ¢ / mile ($0.21) | 20.5 ¢ / mile ($0.205) | Down 0.5 ¢ / mile |
| Charitable Travel | 14.0 ¢ / mile ($0.14) | 14.0 ¢ / mile ($0.140) | Statutory (Flat) |
Answers to common questions about the living wage, regional costs, and calculations.
Starting January 1, 2026, the IRS standard mileage rate is 72.5 cents per mile for business driving, 20.5 cents per mile for medical or qualified military moving, and 14.0 cents per mile for charitable driving.
Multiply the total miles driven for a qualified purpose by the corresponding IRS mileage rate. For example, driving 100 business miles in 2026 is calculated as: 100 miles x $0.725 = $72.50 in reimbursement.
No. Mileage reimbursements paid by your employer at or below the standard IRS rate are considered non-taxable, tax-free reimbursements, provided they are made under an accountable expense plan.
The standard per-mile rate is comprehensive. It covers fixed and variable operating costs, including gasoline, oil, insurance, maintenance, depreciation, repairs, and tires.
Yes, you can track your actual car expenses (gas, repairs, depreciation, insurance) instead. However, you must maintain exhaustive record logs, and you generally cannot switch back to standard rates easily once an asset depreciation method is chosen.
To satisfy IRS auditors, you must keep a contemporaneous mileage log containing: date of the trip, start and end locations, total miles driven, and the clear business/charitable purpose.
For 2025, the standard mileage rates were 70.0 cents per mile for business use, 21.0 cents per mile for medical/moving purposes, and 14.0 cents per mile for charitable driving.
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