EN

Language

Search
CostAnswer

Explore

Language

MethodologyAbout

IRS Standard Rates & Deduction

IRS Mileage Reimbursement Calculator

Calculate official IRS standard mileage deductions and employer reimbursements for business, medical, and charity travel across 2024–2026.

Your numbers

IRS standard mileage deduction & reimbursement

Official standard mileage rates for business, medical, and charitable driving, with accountable plan employer reimbursement rules.
IRS STANDARD RATES

IRS Notice 2024-842025 tax year · $0.70 / mile

miTotal deductible or reimbursable miles
$/miLeave at $0 if self-employed or claiming on tax return
Compare with actual vehicle expenses (Gas, Insurance, Maintenance, Depreciation)
miAll personal + business miles driven in year
$
$
$
$

Tax-Free Employer Reimbursement

$3,500.005,000 miles at $0.70/mile tax-free · 100% tax-free under accountable plan
Standard mileage deduction$3,500.00$0.70 per mile
Total employer payout$3,500.00$0.70/mi
Taxable excess reimbursement$0.00100% tax-free under accountable plan
Recommended write-off methodStandard MileageDifference: $0.00

High confidenceIRS standard rate reproduced directly from official IRS Notice.

How we got this
  1. IRS standard rate (2025 business)IRS Notice 2024-84$0.70/mile
  2. Qualifying miles5,000 miles
  3. Standard mileage value / deduction5,000 mi × $0.70/mi$3,500.00
  4. Employer reimbursement$0.70/mi reimbursement rate$3,500.00
  5. Actual expense deduction41.7% business use of $8,400.00 total vehicle expenses$3,500.00
  6. Optimal tax methodSaves $0.00 more than alternate methodStandard Mileage
What we assumed
  • IRS standard rate from IRS Notice 2024-84 effective 2025-01-01.
  • Commuting miles between your home and primary workplace are personal and nondeductible.
Technical details

Method irs-mileage-v1.0.0Data irs-standard-mileage

Discrepancy in the numbers? You can click Report incorrect result below or email hello@costanswer.com with the Method and Data lines.

Guide

How IRS standard mileage rates and reimbursements work

CostAnswer editorialIndependent calculator publisher

The Internal Revenue Service sets standard mileage rates each year for operating an automobile for business, charitable, medical, or moving purposes. This calculator determines your allowable tax deduction or validates employer reimbursements under an accountable plan.

Standard mileage rate vs. actual vehicle expenses

Taxpayers have two choices for deducting vehicle costs: the standard mileage rate or actual expenses (gas, oil, repairs, insurance, registration, depreciation, and lease payments). The standard mileage rate is easier because it replaces individual receipts with a single per-mile multiplier published annually by the IRS.

For 2025, the business mileage rate is 70 cents per mile (IRS Notice 2024-84), up from 67 cents in 2024 (Notice 2024-08). Medical and military moving rates remain 21 cents per mile, while charitable volunteer travel is set by federal statute at 14 cents per mile. To use the standard rate for a personal car you own, you must choose it in the first year the car is available for business use.

Accountable vs. non-accountable employer reimbursement plans

When an employer reimburses an employee for business travel under an "accountable plan" (requiring business purpose, timely substantiation with a mileage log, and return of excess funds), reimbursements up to the IRS standard rate are completely tax-free and excluded from Form W-2 wages.

If an employer reimburses above the IRS rate, the excess cents per mile are treated as taxable wages subject to federal income tax, Social Security, and Medicare withholding. If the employer does not maintain an accountable plan, the entire reimbursement is treated as taxable W-2 compensation.

The TCJA restriction on W-2 employee deductions

Under the Tax Cuts and Jobs Act (TCJA), unreimbursed employee business expenses are suspended as miscellaneous itemized deductions through 2025. This means W-2 employees cannot claim mileage on Schedule A if their employer refuses to reimburse them.

Self-employed individuals, independent contractors (1099-NEC/1099-K), sole proprietors, single-member LLCs, and gig workers (rideshare, delivery) continue to deduct business mileage on Schedule C (Form 1040) directly against gross business revenue.

Questions about this calculator

Can I deduct commuting miles between my home and office?

No. Commuting from your home to your primary regular workplace is a personal expense according to IRS regulations and is never deductible, regardless of distance. However, driving from your main office to a client site, traveling between two job sites, or visiting temporary work locations qualifies as deductible business mileage.

What records must I keep to prove my mileage to the IRS?

Under IRC §274(d), you must keep a contemporaneous written mileage log. The log must record: (1) date of the trip, (2) starting location and destination, (3) business purpose, and (4) exact odometer reading or total miles driven. Generic estimates or round numbers reconstructed at tax time will be disallowed in an audit.

Can I deduct parking fees and tolls in addition to the standard mileage rate?

Yes. Business-related parking fees and highway/bridge tolls are deductible separately in addition to the standard mileage rate deduction. However, parking fees at your regular workplace are considered commuting costs and cannot be deducted.

Terms used here

Standard mileage rate
An IRS-established dollar rate per mile that replaces itemized gas, insurance, maintenance, and depreciation deductions.
Accountable plan
An employer expense reimbursement arrangement meeting IRS requirements of business connection, substantiation, and return of excess advances, rendering reimbursements tax-free.
Depreciation component
The portion of the standard mileage rate (31¢/mi for 2025) that reduces the tax basis of your vehicle when calculating gain or loss upon vehicle sale.
Schedule C
The IRS tax schedule used by sole proprietors and 1099 self-employed individuals to report profit or loss from business, including vehicle deductions.

Practical tips

Use a smartphone mileage tracking app with automated GPS logging to ensure you meet IRS contemporaneous substantiation rules.

If you purchase a high-cost vehicle or drive fewer miles with high maintenance and depreciation, calculate actual expenses to verify which method produces a larger tax write-off.

Limits and caveats

W-2 employees cannot deduct unreimbursed mileage on federal tax returns under TCJA; negotiate a tax-free accountable reimbursement with your employer instead.

You cannot claim the standard mileage rate if you previously took Section 179 expensing or MACRS depreciation on the vehicle.

Results are for information. They are not legal, tax, medical, or financial advice. How the math is maintained · Report a wrong figure.

Engine notes

Rounding, versioning, and omissions that sit beside the guide rather than repeating it.

  • Standard mileage rate vs. actual expenses. The IRS standard rate provides a fixed deduction per mile driven for business (70¢ in 2025, 67¢ in 2024), medical care (21¢), charitable service (14¢), or military moves (21¢). It substitutes for tracking receipts for gasoline, insurance, maintenance, and vehicle depreciation.
  • Accountable plan employer reimbursements. Reimbursements made by an employer under an accountable plan up to the standard rate are completely free of federal and state income tax, Social Security, and Medicare withholding. Any reimbursement rate above the IRS rate is taxable Form W-2 income.
  • TCJA employee deduction restrictions. Under the Tax Cuts and Jobs Act, W-2 employees cannot claim unreimbursed mileage deductions on Schedule A. Self-employed freelancers, 1099 independent contractors, and small business owners deduct qualifying business miles directly on Schedule C.

Calculation receipt

What each number here is

This answer is built from published figures. Each one is named below, with the release it came from.

VERIFIEDIRS Standard Mileage Rates
Sets the figures this answer is made of. Without it the page says so rather than estimating.

If a source above is unavailable or out of date: The IRS standard rate is set annually by official notice. Without it the page cannot determine deductible rates or taxable excess reimbursements.

Sources

Where this data comes from

Internal Revenue ServiceIRS Notice 2024-84 (2025 Standard Mileage Rates) and Notice 2024-08 (2024 Rates). Rev. Proc. 2019-46 rules for substantiated business use.Verified 2026-09-08 ↗

Next

People working through pay and take-home and running a car usually need these next.

MoneySelf-employment taxFigure Schedule SE tax on net profit after the 92.35% factor, sharing the Social Security wage base with W-2 wages, plus Form 8959 Additional Medicare Tax.MoneyQuarterly estimated taxWork out the Form 1040-ES required annual payment and four equal installments using the 90%, 100% and 110% safe harbors.CarCar affordabilityMonthly cash cost of a car (loan payment, fuel or charging, insurance, upkeep, registration) and how much of your take-home pay it would take. Depreciation is not included, so this is out-of-pocket cost, not total cost of ownership.CarRoad-trip fuelFuel cost for a drive from your miles, MPG, and the most recent EIA regular-gas average for your state or region. You can type a pump price instead.MoneyHourly to salaryTurn an hourly wage into weekly, monthly, and yearly pay before taxes. Overtime has its own line.MoneySalary after taxEstimate federal income tax, FICA, and state income tax on a U.S. salary, then see take-home by year, month, and paycheck.