Calculate your mileage reimbursement using IRS standard mileage rates for 2025 and 2026. Supports business, medical, moving, charitable, and truck/heavy vehicle rates with breakdowns.
The IRS annually sets standard mileage rates that taxpayers can use to calculate deductible costs of operating a vehicle. Below are the current rates for 2025 and 2026.
| Purpose | 2025 Rate | 2026 Rate |
|---|---|---|
| 💼 Business (Standard) | 70¢ per mile | 70¢ per mile |
| 🚚 Truck / Heavy Vehicle | 75¢ per mile | 75¢ per mile |
| 🏥 Medical / Moving | 21¢ per mile | 22¢ per mile |
| 🙏 Charitable | 14¢ per mile | 14¢ per mile |
Scenario: Sarah drives 5,000 business miles in 2025 using a standard car.
Rate: 70¢ per mile (2025 business rate)
Calculation: 5,000 × $0.70 = $3,500.00
Per week (5-day): $3,500 ÷ 48 weeks = $72.92
Per month: $3,500 ÷ 11 months = $318.18
Scenario: Mark drives a delivery truck 8,000 business miles in 2025.
Rate: 75¢ per mile (2025 truck rate)
Calculation: 8,000 × $0.75 = $6,000.00
Per week: $6,000 ÷ 48 = $125.00
Scenario: Emily drives 2,000 miles for medical appointments in 2026.
Rate: 22¢ per mile (2026 medical rate)
Calculation: 2,000 × $0.22 = $440.00
Scenario: A 30-mile one-way commute, 5 round trips per week, for 48 weeks at 2025 business rate.
Weekly miles: 30 × 2 × 5 = 300 miles
Total miles: 300 × 48 = 14,400 miles
Total reimbursement: 14,400 × $0.70 = $10,080.00
Per week: 300 × $0.70 = $210.00
Follow these steps to calculate your mileage reimbursement accurately:
The IRS standard mileage rate is a simplified method for calculating the deductible costs of operating a vehicle for business, medical, moving, or charitable purposes. Instead of tracking every receipt for gas, oil changes, tires, insurance, and repairs, you simply multiply your miles by the applicable rate.
The rate is set annually by the IRS and is designed to reflect the average cost of operating a vehicle, including both fixed costs (depreciation, insurance, registration) and variable costs (gas, maintenance, tires). For 2025, the business rate is 70 cents per mile, while trucks and heavy vehicles qualify for a higher rate of 75 cents per mile to account for their increased operating costs.
Medical and moving expenses are deductible at a lower rate (21¢/mile for 2025, 22¢/mile for 2026) because these trips are typically shorter and the deduction is intended to offset the cost of necessary medical travel or relocation. Charitable driving has the lowest rate at 14¢ per mile, unchanged for both years.
When claiming vehicle expenses, you have two methods to choose from. Understanding the difference can save you hundreds or even thousands of dollars.
With the standard mileage rate, you deduct a fixed amount per mile driven for business purposes. For 2025, that's 70¢ per mile. This method is simpler and requires less record-keeping — you just need to log your miles, date, and purpose of each trip. The IRS standard rate already includes depreciation, so you cannot take additional depreciation deductions separately.
With the actual expense method, you track and deduct the actual costs of operating your vehicle for business use. This includes gas, oil changes, repairs, tires, insurance, registration fees, lease payments, and depreciation. You then calculate the business-use percentage (business miles ÷ total miles) and apply it to your total expenses. This method requires meticulous record-keeping but can yield a larger deduction if you drive an expensive or high-maintenance vehicle.
The rules differ significantly depending on whether you're an employee or self-employed:
If you're self-employed, you can deduct mileage expenses on Schedule C of your tax return. This includes all miles driven for business purposes — meeting clients, traveling to job sites, picking up supplies, and any other work-related driving. You can choose between the standard mileage rate and the actual expense method each year. Commuting from home to your regular place of business is not deductible, but travel between different work locations is.
Due to the Tax Cuts and Jobs Act of 2017, employees can no longer deduct unreimbursed mileage expenses on their federal tax returns for tax years 2018 through 2025. This means employees who drive for work must seek reimbursement directly from their employer. Some states (like California, Illinois, and New York) still allow mileage deductions on state taxes, and employees who drive for work should check their employer's reimbursement policy. If your employer reimburses at the IRS rate, the reimbursement is tax-free.
Medical mileage can be deducted by anyone who itemizes deductions, regardless of employment status. Moving expenses are deductible only for active-duty military personnel. Both use the medical/moving rate (21¢ for 2025, 22¢ for 2026).