The short version
Multiply business miles by the IRS rate for the date you drove them. For 2026 that is 72.5 cents through June 30 and 76 cents from July 1, so a year of driving needs two multiplications, not one. Business tolls and parking go on top at cost. Gas, repairs and depreciation do not, because the rate already includes them. The drive from home to your regular workplace never counts.
Mileage reimbursement calculator
Rates are the IRS standard mileage rates, listed in the table below. Nothing you enter leaves this page.
The 2026 IRS rates, and the change on July 1
The IRS announced a mid-year increase for 2026, so the rate you use depends on the date of the drive. We read the IRS standard mileage rates page on 5 November 2026.
| Use | Jan 1 to Jun 30, 2026 | Jul 1 to Dec 31, 2026 | 2025 (full year) |
|---|---|---|---|
| Business | 72.5 cents | 76 cents | 70 cents |
| Medical and qualified military moving | 20.5 cents | 23.5 cents | 21 cents |
| Charitable | 14 cents | 14 cents | 14 cents |
Most pages that rank for this search show one rate. If you drove in both halves of 2026, one rate is wrong for part of your year, and the calculator above prices each half separately. For 2025 the IRS lists 70 cents for business, 21 cents for medical and qualified military moving, and 14 cents for charitable driving, and the calculator prices all three.
A worked example
A consultant drives 1,240 business miles between January and June and 1,860 between July and December, and pays $38 in tolls and $45 in parking at client sites. Every figure below is computed by the same code as the calculator.
| Line | Miles | Rate | Amount |
|---|---|---|---|
| Jan 1 to Jun 30, 2026 | 1,240 mi | 72.5 cents | $899.00 |
| Jul 1 to Dec 31, 2026 | 1,860 mi | 76 cents | $1,413.60 |
| Mileage subtotal | 3,100 mi | $2,312.60 | |
| Tolls | at cost | $38.00 | |
| Parking at client sites | at cost | $45.00 | |
| Total to claim or reimburse | $2,395.60 |
One flat 76 cents on all 3,100 miles would give $2,356.00 before tolls, which overstates the mileage by $43.40. One flat 72.5 cents would give $2,247.50 and understate it by $65.10. Splitting by date is the only version that matches the notice.
What counts as a business mile
- Counts: driving to a client, a job site, a supplier or the bank for the business, and between two work locations in the same day.
- Does not count: the drive between home and your main or regular workplace. Publication 463 says commuting is not deductible no matter how far your home is from your regular place of work.
- Add at cost: business tolls and parking fees. Parking at your regular place of business is not deductible.
- Already inside the rate: gas, oil, repairs, tires, insurance and depreciation. Do not add them again.
When you cannot use the standard rate
Publication 463 sets limits. You cannot use the standard mileage rate if you use five or more cars for business at the same time, if you used a depreciation method other than straight line or MACRS on the car, or if you claimed a section 179 deduction or the special depreciation allowance on it. For a car you own, you must choose the standard rate in the first year the car is in your business. After that you can switch to actual expenses. For a leased car, you must use the standard rate for the whole lease.
Keep a log the IRS would accept
The IRS wants records that prove the time, place and business purpose of each trip, kept in a log, diary, notebook or other written record, according to Publication 463. In practice, write one line per trip: date, starting point, destination, business purpose, and miles. Add odometer readings at the start and end of the year. A spreadsheet or an app is fine. Reconstructing a year of trips from a calendar in April is the common way to lose a deduction.
Employees, freelancers and employers
- Self-employed: you claim business mileage on your own return, so the number matters to your tax. The estimated tax calculator shows what your profit costs in tax, and mileage lowers that profit.
- Employees: the usual route is reimbursement from your employer. Ask for the employer's policy in writing and whether it pays the IRS rate.
- Employers: federal law does not set a mileage rule, and some states do. The Coast calculator page names California, Massachusetts and Illinois. Many employers use the IRS rate because it is easy to defend. Check your state labor department before you set a lower one.
Billing a client for mileage
Many trades charge travel as its own line. State the miles, the rate and the amount so the client can check it. The line the calculator produces for the example above is:
Mileage, 3,100 mi at IRS rates (1,240 mi at $0.725, 1,860 mi at $0.76) = $2,312.60
For a single trip, the same format reads like this:
Mileage, 62 mi at $0.76 per mile = $47.12
You are free to charge more or less than the IRS rate. If you do, say so in your terms, which the payment terms guide and the invoice generator help with. If your own rate is 67 cents, the same 3,100 miles come to $2,077.00, which is $235.60 less than the IRS rate, and the calculator's comparison box shows that difference.
Sources
- IRS, standard mileage rates, read 5 November 2026 (rates, as cited there: releases IR-2025-128, IR-2026-29, IR-2024-312)
- IRS Publication 463, travel, gift, and car expenses (standard rate conditions, commuting, tolls and parking, records)
- Coast, mileage reimbursement calculator (state reimbursement rules named)
Common questions
What is the IRS mileage rate for 2026?
For business use it is 72.5 cents a mile for miles driven January 1 through June 30, 2026, and 76 cents a mile from July 1 through December 31 (IRS release IR-2026-29). The medical and military moving rate is 20.5 cents, then 23.5 cents, and the charitable rate stays at 14 cents.
Which rate applies to a trip that spans June and July?
The rate follows the date you drove, not the date you file or get paid. A trip on June 30 is at 72.5 cents and one on July 1 is at 76 cents. Keep your log by date so each trip can be priced in the right half of the year.
Can I add gas, tolls and parking to the standard mileage rate?
Not gas. The standard rate already covers fuel, repairs and depreciation. Business parking fees and tolls can be added on top, according to IRS Publication 463. Parking at your regular place of business does not count.
Is driving to my regular workplace a business mile?
No. The IRS treats the drive between your home and your main or regular workplace as commuting, and it is not deductible however far it is. A drive from your office to a client, or from home to a client if home is your main place of business, can count.
Does an employer have to reimburse mileage?
Federal law does not set a rule for this. Some states do. California, Massachusetts and Illinois are named as requiring it on the Coast calculator page we read on 5 November 2026, so ask your state labor department. Many employers use the IRS rate because it is simple to defend.
Can I use the standard mileage rate for any car?
Not always. Publication 463 says you cannot use it if you run five or more cars at the same time, if you used a depreciation method other than straight line, or if you claimed a section 179 deduction or special depreciation on the car. For a car you own you must choose the standard rate in the first year you use it for business.
Can I bill a client for mileage at the IRS rate?
Yes, if your agreement allows travel charges. The IRS rate is a common, easy-to-explain choice, but you can bill any rate you and the client agree on. Put it on its own invoice line with the miles and the rate so it reads as a pass-through.
What this is. A calculator and guide written by InvoiceTools. It is general information, not tax or legal advice. Rates are the IRS figures read on 5 November 2026, and the IRS can change them.
Last reviewed by InvoiceTools, Houston, Texas, on 5 November 2026.