Mileage Reimbursement
Calculate IRS mileage reimbursement for business, medical, and charity miles at standard rates. Free online calculator with breakdowns, charts, and year picker.
About This Calculator
The Mileage Reimbursement Calculator helps employees, self-employed individuals, and volunteers calculate the total amount they can claim for using their personal vehicle for business, medical, or charitable purposes. Based on the IRS standard mileage rates published annually, this tool provides instant calculations with detailed breakdowns by driving purpose.
The calculation uses the selected tax year's IRS standard mileage rate for each purpose. For business miles, the rate covers operating costs including fuel, maintenance, depreciation, and insurance. Medical miles apply when driving to receive healthcare services. Charity miles apply when volunteering for qualified organizations. Simply enter your miles for each category, select your year, and the calculator multiplies each by the applicable rate to determine your total reimbursable amount.
United States: The IRS standard mileage rate for 2025 is 70¢/mile for business, 21¢/mile for medical, and 14¢/mile for charity. The rate is updated annually. Reimbursements at or below the IRS rate are tax-free if your employer uses an accountable plan. Self-employed individuals deduct mileage on Schedule C. Record keeping is essential — maintain a mileage log with dates, destinations, and purpose for each trip.
United Kingdom: HMRC uses Approved Mileage Allowance Payments (AMAP) with different rules. Business miles are reimbursed at 45p per mile for the first 10,000 miles and 25p per mile thereafter. Medical and charity mileage do not have separate rates. Employers can pay up to the AMAP rate tax-free.
India: There is no standard IRS-style mileage rate in India. Employers typically reimburse actual fuel costs or provide a fixed car allowance. The Income Tax Act allows a standard deduction of 30% of the car's value plus actual running expenses for business use, or a per-kilometer reimbursement based on company policy.
Frequently Asked Questions
What is the IRS mileage reimbursement rate for 2025?
For 2025, the IRS standard mileage rate is 70 cents per mile for business use, 21 cents per mile for medical purposes, and 14 cents per mile for charitable organizations. These rates apply to all 50 states and are updated annually by the IRS.
How do I calculate mileage reimbursement?
To calculate mileage reimbursement, multiply the number of miles driven for each purpose by the applicable IRS standard mileage rate. For example, 100 business miles at 70 cents per mile equals $70.00. The calculator automatically sums business, medical, and charity miles using the selected tax year's rates.
What expenses does the IRS mileage rate cover?
The standard mileage rate covers the operating costs of a vehicle including gas, oil, repairs, tires, insurance, depreciation, and registration fees. It does not cover parking fees, tolls, interest on car loans, or personal expenses like meals and lodging.
Can I use mileage reimbursement for commuting?
No, commuting miles between your home and regular workplace are generally not deductible or reimbursable. Only miles driven for business purposes away from your tax home, medical visits, and charitable work qualify for the standard mileage rate.
What is the mileage reimbursement rate for charity work?
The IRS sets a fixed charity mileage rate of 14 cents per mile, which has remained unchanged since 1997. Unlike business and medical rates, the charity rate does not adjust for inflation. Miles driven while volunteering for qualified charitable organizations are deductible.
How does UK mileage reimbursement differ from US IRS rates?
In the UK, HMRC sets Approved Mileage Allowance Payments (AMAP) at 45 pence per mile for the first 10,000 business miles and 25 pence per mile thereafter. This differs from the US IRS system which uses a single rate regardless of total miles. UK rates also cover motorcycles (24p/mile) and bicycles (20p/mile).
Is mileage reimbursement taxable income?
In the US, mileage reimbursements paid at or below the IRS standard rate are not taxable income. If your employer reimburses above the IRS rate, the excess is considered taxable wages. Self-employed individuals deduct mileage as a business expense on Schedule C.
How often does the IRS update mileage rates?
The IRS typically updates mileage rates once per year, announced in late December or early January for the upcoming tax year. In periods of rapidly rising fuel costs, the IRS may issue a mid-year adjustment, as happened in 2022 when the rate increased from 58.5 to 62.5 cents per mile in July.