Guide

How to calculate mileage reimbursement

Business miles times the rate. The only trap is a rate that changes during the year.

The calculation

1. Add the business miles of the period. Leave out personal and commuting trips.
2. Multiply by the rate of your employer or your tax authority.
3. If the rate changed, value each trip at the rate of its own date.

Example

For 2026 the IRS set 72.5¢ per business mile until June 30 and 76¢ from July 1. With 1,200 business miles in the first half and 800 in the second: 1,200 × $0.725 = $870, plus 800 × $0.76 = $608, $1,478 in all.

Tiered rates

Some countries change the rate past a threshold: in the UK, the rate drops after 10,000 business miles in the tax year. Then the order of the trips matters, and the tax year may not start in January. See Mileage rates by country.

With Mileage Log

Enter your rate once, add each change with its date, and the Claim tab gives the amount for any month, quarter or year. See Mileage rates. Rates are a starting point; your employer or tax authority has the final word.