Free mileage reimbursement calculator
Enter your miles and purpose — this mileage reimbursement calculator applies the 2025 IRS standard rate (70¢ business / 21¢ medical / 14¢ charity) to show your reimbursement, updated live, as you type.
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MPG = miles ÷ gallons. L/100 km = 235.21 ÷ MPG.
Results are estimates. Consult a professional.
How the mileage reimbursement calculator works
This calculator computes IRS-standard mileage reimbursement by multiplying total miles driven by the applicable rate for the purpose of travel. The IRS publishes standard mileage rates annually; for 2025, the rates are 70 cents per mile for business, 21 cents per mile for medical and military moving purposes, and 14 cents per mile for charitable service.
The standard mileage rate is designed to cover the cost of gasoline, depreciation, insurance, and routine maintenance on a per-mile basis. Employers who reimburse at or below the IRS rate owe no additional payroll tax on the reimbursement, provided they use an accountable plan (require substantiation of mileage and return excess advances). Reimbursements above the IRS rate become taxable wages for the employee.
IRS Rev. Proc. 2024-25 — 2025 standard mileage ratesWorked example: monthly business mileage reimbursement
Driver: W-2 sales employee. January 2025 business miles: 1,240 (documented in mileage log with dates, destinations, and business purpose). Employer reimburses at IRS rate. Purpose: Business.
Reimbursement at 70¢/mile by total miles driven
The table below shows business mileage reimbursements at the 2025 IRS rate of $0.70 per mile. For medical or charitable mileage, multiply the miles column by $0.21 or $0.14 respectively.
| Miles Driven | @ $0.70 (Business) | @ $0.21 (Medical) | @ $0.14 (Charity) |
|---|---|---|---|
| 500 miles | $350.00 | $105.00 | $70.00 |
| 1,000 miles | $700.00 | $210.00 | $140.00 |
| 2,500 miles | $1,750.00 | $525.00 | $350.00 |
| 5,000 miles | $3,500.00 | $1,050.00 | $700.00 |
| 10,000 miles | $7,000.00 | $2,100.00 | $1,400.00 |
| 15,000 miles | $10,500.00 | $3,150.00 | $2,100.00 |
Source: IRS Rev. Proc. 2024-25; 2025 rates: 70¢ business, 21¢ medical/moving, 14¢ charity.
Tips for mileage tracking and reimbursement
The IRS requires contemporaneous mileage records — meaning you must log each trip at or near the time it occurs, not reconstruct it at year end from memory. A disallowed mileage deduction or reimbursement can trigger back taxes, penalties, and interest.
- Log every business trip the same day — A compliant mileage log must record the date, starting location, destination, business purpose, and miles driven for each trip. Apps like MileIQ, Everlance, and TripLog automate this via GPS and are IRS-accepted records.
- Commuting miles are never deductible — Miles between your home and your regular workplace are commuting miles, which are personal — not business — expenses under IRS rules. The only exception: if your home qualifies as your principal place of business under the home office rules, then trips from home to a client site are business miles.
- Standard mileage vs. actual expense method — Drivers can alternatively deduct actual vehicle expenses (gas, insurance, depreciation, repairs) in the business-use proportion. Once you use actual expenses for a vehicle in any year, you generally cannot switch to the standard rate for that vehicle. Choose carefully in year one.
- Employer plans above the IRS rate are taxable — If your employer reimburses at $0.80/mile while the IRS rate is $0.70, the extra $0.10/mile is taxable compensation. The excess must appear on your W-2 and is subject to income tax and FICA withholding.
- Medical and charity rates are fixed by statute — The charitable rate of 14¢/mile is set by law (26 U.S.C. § 170) and has not changed since 1997. Congress would have to act to increase it. The medical and business rates are adjusted annually for inflation and fuel costs.
Accuracy and limitations
This calculator applies the 2025 IRS standard mileage rates (effective January 1, 2025). The IRS occasionally announces a mid-year rate adjustment when fuel prices shift significantly — as happened in 2022 when a mid-year adjustment raised the business rate from 58.5¢ to 62.5¢. Check IRS.gov at mid-year if fuel prices have moved sharply. The rates displayed here may not reflect future changes.
The standard mileage rate is a proxy, not a guarantee. Drivers with high actual vehicle costs (luxury cars, electric vehicles with high lease payments, or vehicles requiring frequent repairs) may find that the actual expense method yields a larger deduction. Conversely, drivers with fuel-efficient or fully depreciated vehicles often find the standard rate more generous than actual costs. Consult a CPA or enrolled agent before locking in your method for a new vehicle.
Mileage reimbursement terms defined
About this mileage reimbursement calculator
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