Mileage Reimbursement Calculator
Calculate mileage reimbursement using 2025 IRS rates. Track business, medical, and charitable driving expenses.
Last updated: January 2025 | 2025 IRS Rate: $0.70/mile
IRS Standard Mileage Rates
Historical IRS mileage rates for business, medical, and charitable purposes
| Year | Business | Medical/Moving | Charity |
|---|---|---|---|
| 2025 | $0.70 | $0.21 | $0.14 |
| 2024 | $0.67 | $0.21 | $0.14 |
| 2023 | $0.655 | $0.22 | $0.14 |
| 2022 (Jul-Dec) | $0.625 | $0.22 | $0.14 |
| 2022 (Jan-Jun) | $0.585 | $0.18 | $0.14 |
What the IRS Mileage Rate Covers
Fuel Costs
Gasoline, diesel, or electricity for EVs
Maintenance
Oil changes, repairs, and general upkeep
Tires
Tire replacement and rotation
Insurance
Auto insurance premiums
Registration
Vehicle registration and license fees
Depreciation
Vehicle value decline over time
Note: Parking fees and tolls can be deducted separately in addition to the standard mileage rate.
Frequently Asked Questions
What is the IRS mileage rate for 2025?
The IRS standard mileage rate for 2025 is $0.70 per mile for business use. Medical and moving purposes are $0.21 per mile, and charitable purposes remain at $0.14 per mile.
How do I calculate mileage reimbursement?
Multiply the number of miles driven by the mileage rate. For example, 100 miles × $0.70/mile = $70 reimbursement. You can use the IRS standard rate or your company's rate.
What expenses does the IRS mileage rate cover?
The IRS standard mileage rate covers gas, oil, repairs, tires, insurance, registration, and depreciation of your vehicle. You cannot deduct these separately if using the standard rate.
Can I use the standard mileage rate for any vehicle?
The standard mileage rate can be used for cars, vans, pickups, and panel trucks. It cannot be used for vehicles with 5+ passengers for hire, or if you've claimed depreciation using a method other than straight-line.
What records do I need for mileage deductions?
Keep a mileage log with: date, destination, business purpose, and miles driven. Apps can track this automatically. You also need proof of total annual miles for personal vs. business use percentage.
Should I use actual expenses or standard mileage rate?
Compare both methods. Standard mileage is simpler and often better for fuel-efficient vehicles. Actual expenses may be better for expensive vehicles with high maintenance costs. Once you choose actual for a vehicle, you must continue with it.
Is mileage reimbursement taxable?
If your employer reimburses at or below the IRS rate under an accountable plan, it's not taxable. Reimbursement above the IRS rate may be taxable as income. Self-employed individuals deduct mileage on Schedule C.
What is an accountable plan for mileage?
An accountable plan requires: business connection, substantiation within 60 days, and return of excess reimbursement within 120 days. Reimbursements under accountable plans aren't reported as income.
Can I deduct commuting miles?
No, commuting from home to your regular workplace is not deductible. However, travel from your workplace to other work locations, client sites, or temporary work locations can be deducted.
How often does the IRS update mileage rates?
The IRS typically announces new mileage rates each December for the following year. Rates can change mid-year if gas prices fluctuate significantly, as happened in 2022.
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