Work out what your driving is worth — for expense reimbursement or a business mileage deduction. Built with rideshare, delivery, and freelance drivers in mind.
Used to estimate what the deduction is worth in tax saved.
Projects your monthly and annual mileage value.
Add this free mileage reimbursement calculator to your own website — just copy and paste the code below.
The IRS publishes a standard mileage rate each year that represents the average cost of operating a vehicle — fuel, maintenance, insurance, and depreciation combined. Multiply your qualifying miles by that rate to get your deduction or reimbursement.
Employers are not required by federal law to reimburse mileage, though some states do require reimbursement of necessary business expenses. Many employers use the IRS rate because reimbursement at or below it is generally not taxable to the employee.
Keep a contemporaneous log with the date, purpose, and miles for each trip. Most rideshare and delivery apps provide an annual mileage summary you can use as a starting point, though it often understates the miles you can claim.
How do I calculate mileage reimbursement?
Multiply your qualifying business miles by the applicable rate per mile. For example, 1,200 miles at $0.70 per mile is $840. Always confirm the current-year IRS rate before filing.
Standard mileage rate or actual expenses — which is better?
The standard rate is far simpler and often larger for high-mileage drivers. Actual expenses (gas, repairs, insurance, depreciation) can be better for expensive vehicles with lower mileage. There are restrictions on switching methods, so ask a tax professional.
Can I deduct mileage as a W-2 employee?
Generally no. Unreimbursed employee business expenses are not deductible on federal returns for most employees under current law, though some states still allow it. Self-employed people and contractors can deduct business mileage.
Is mileage reimbursement taxable income?
Reimbursement at or below the IRS standard rate under an accountable plan is generally not taxable. Amounts above the standard rate, or paid without proper substantiation, may be treated as taxable wages.