Mileage reimbursement calculator for 2026
The IRS raised the 2026 business mileage rate partway through the year: 72.5¢ a mile through June 30, 76¢ from July 1. A calculator that uses one rate for the whole year gets it wrong. This one uses the rate for the day you drove.
How the 2026 rate works
The IRS sets the business standard mileage rate once a year and rarely changes it mid-year. In 2026 it did: the rate announced for January 1 was 72.5¢ a mile, and the IRS raised it to 76¢ for miles driven from July 1, because of the rise in fuel prices. So a mile's rate depends on the day it was driven, not the day it's reimbursed or filed.
Who uses it
- Employees reimbursed by their employer. A reimbursement at or below the standard rate, under an accountable plan with a mileage log, isn't income. Anything paid above the rate is taxable wages. Employers can choose to reimburse less.
- S corporation owners. You're your corporation's employee, so it reimburses your miles the same way — see the accountable plan and the filled-in mileage log in the template.
- Sole proprietors. You deduct the miles on Schedule C, either at the standard rate or by actual costs. For a car you own, choose the standard rate in the first year you use it for business; for a leased car, you have to use it for the whole lease. It isn't available with five or more cars in use at the same time.
With the standard rate, business parking and tolls are added on top; gas, insurance and repairs are already in it.
What counts as a business mile
- Counts: driving to a client, a job site, a supplier, the bank or the post office for the business.
- Doesn't count: commuting between home and your regular place of work, and personal errands.
- From home: if your home office is your principal place of business, trips from it to clients and suppliers are business travel, not commuting. See the home office rules.
The log the IRS expects
For each business trip: the date, where you went, why, and the miles. And the car's total miles for the year. Keep it as you go — a log rebuilt at year-end is the first thing an examiner questions. The calculator's trip entry follows the same shape.
When it doesn't fit
- The miles are commuting, or mixed trips where the business part can't be separated.
- You've been using actual costs on a car you own, rather than the standard rate from the first year.
- You run five or more vehicles at once. Actual costs only.
Whether your trips count, and which method suits your car, is a question for your CPA or tax attorney.
Sources
- IRS standard mileage rates — 72.5¢ through June 30, 76¢ from July 1, 2026
- Internal Revenue Bulletin 2026-29 — Announcement 2026-11, the mid-year revision
- Notice 2026-10 — the rates announced for January 1
- IRS Publication 463 — choosing the standard rate, parking and tolls, commuting, and records
- Rev. Proc. 2019-46 — mileage allowances and reimbursements
General information, not advice for your situation. Whether a strategy fits depends on your facts — talk to your CPA or tax attorney about whether you qualify before you put it in place. Your accountant remains responsible for your return.
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