Mileage Reimbursement Calculator
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Results
1,250 miles at the IRS 2026 business, from July 1 rate: $950.00.
| Rate | Amount |
|---|---|
| IRS 2026 business, from July 1: 76¢ | $950.00 |
| IRS 2026 business, Jan 1 – Jun 30: 72.5¢ | $906.25 |
| IRS 2026 medical or moving, from July 1: 23.5¢ | $293.75 |
| IRS 2026 medical or moving, Jan 1 – Jun 30: 20.5¢ | $256.25 |
| IRS charitable (2025 and 2026): 14¢ | $175.00 |
| IRS 2025 business: 70¢ | $875.00 |
| IRS 2025 medical or moving: 21¢ | $262.50 |
Business deduction for the self-employed, or a tax-free employer reimbursement under an accountable plan. IRS rates: 72.5¢ (business), 20.5¢ (medical or moving) for January 1 – June 30, 2026 and 76¢ / 23.5¢ from July 1, 2026 (Notice 2026-10, Announcement 2026-11); charitable 14¢. Commuting is not business mileage.
How to use the mileage calculator
- Pick the rate. US rates changed on July 1, 2026, so choose the one for the period you drove; split a year's mileage into two calculations if needed.
- Enter the business miles you are claiming. Use a mileage log, not an estimate: both the IRS and HMRC expect records.
- UK car and van claims: add business miles already driven this tax year so the 25p rate starts at the right point, plus any passengers.
- Optionally add US parking fees and tolls, or what a UK employer pays per mile to see the shortfall or excess. For any other rate, choose Custom.
Mileage reimbursement formula
HMRC car or van: first 10,000 business miles in the tax year × 55p + further miles × 25p
Passenger payment (HMRC) = passengers × 5p × miles
A standard mileage rate replaces adding up fuel, insurance, repairs and depreciation: one figure per mile covers the cost of running the vehicle. In the US the IRS business rate is used by self-employed people to deduct business driving and by employers to reimburse employees tax-free under an accountable plan. In the UK, payments up to HMRC's approved amount are tax-free for the employee; the 10,000-mile threshold counts all business miles in the tax year (6 April to 5 April), not each trip.
Worked examples
A self-employed consultant in the US logs 1,250 business miles in August 2026. At the 76¢ rate in force from July 1, the deduction is $950.00. The same miles driven in March 2026, at 72.5¢, would be worth $906.25.
A UK employee drives 12,000 business miles in their own car in the 2026–27 tax year. The approved amount is 10,000 × 55p + 2,000 × 25p = £6,000.00. If their employer pays a flat 45p a mile (£5,400.00), they can claim tax relief on the £600.00 shortfall. Under the 2025–26 rates the same mileage was worth £5,000.00.
IRS standard mileage rates, 2025 and 2026
| Rate | Cents per mile | Applies to |
|---|---|---|
| IRS 2026 business, from July 1 | 76 | Business miles driven July 1 – December 31, 2026 |
| IRS 2026 business, Jan 1 – Jun 30 | 72.5 | Business miles driven January 1 – June 30, 2026 |
| IRS 2026 medical or moving, from July 1 | 23.5 | Miles driven July 1 – December 31, 2026 |
| IRS 2026 medical or moving, Jan 1 – Jun 30 | 20.5 | Miles driven January 1 – June 30, 2026 |
| IRS charitable (2025 and 2026) | 14 | Set by law; the same in 2025 and 2026 |
| IRS 2025 business | 70 | Business miles driven in 2025 |
| IRS 2025 medical or moving | 21 | Miles driven in 2025 |
Sources: IRS Notice 2026-10 (rates from January 1, 2026), Announcement 2026-11 (rates from July 1, 2026) and the IRS standard mileage rates page, checked October 2026. The charitable rate is set by law at 14 cents.
HMRC approved mileage rates
| Vehicle and tax year | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| 2026–27 car or van | 55p | 25p |
| 2025–26 car or van | 45p | 25p |
| motorcycle | 24p | 24p |
| bicycle | 20p | 20p |
Source: GOV.UK travel: mileage and fuel rates and allowances and HMRC's June 2026 notice raising the car and van rate from 45p to 55p, backdated to 6 April 2026. Passenger payments are 5p per passenger per business mile.
Mileage amounts at a glance
| Business miles | IRS 76¢ | IRS 72.5¢ | HMRC car 2026–27 | HMRC car 2025–26 |
|---|---|---|---|---|
| 500 | $380.00 | $362.50 | £275.00 | £225.00 |
| 1,000 | $760.00 | $725.00 | £550.00 | £450.00 |
| 2,500 | $1,900.00 | $1,812.50 | £1,375.00 | £1,125.00 |
| 5,000 | $3,800.00 | $3,625.00 | £2,750.00 | £2,250.00 |
| 10,000 | $7,600.00 | $7,250.00 | £5,500.00 | £4,500.00 |
| 15,000 | $11,400.00 | $10,875.00 | £6,750.00 | £5,750.00 |
| 20,000 | $15,200.00 | $14,500.00 | £8,000.00 | £7,000.00 |
Tips for mileage claims
- Commuting doesn't count. Driving between home and your regular workplace is personal mileage under both IRS and HMRC rules. Trips to clients, temporary sites and between workplaces usually qualify.
- Keep a log. Record the date, destination, purpose and miles for each trip as you go. Reconstructing a year of driving from memory is hard to defend.
- Use the right period. 2026 is unusual in the US: business driving before July 1 uses 72.5¢ and after it 76¢. UK rates follow the tax year starting 6 April.
- Rules have conditions. In the US, whether you can use the standard rate depends on how you have treated the vehicle in earlier years. This calculator does the arithmetic; check eligibility with the IRS or HMRC guidance or a tax professional.
For the fuel part of a trip on its own, use the fuel cost calculator, and to measure your car's real economy, the gas mileage calculator. Self-employed and working out what is left after tax? Try the income tax calculator.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business driving, 72.5 cents a mile from January 1 to June 30, 2026 and 76 cents a mile from July 1, 2026, after a mid-year increase announced by the IRS. Medical and military moving miles are 20.5 cents, then 23.5 cents, and charitable miles 14 cents all year.
How do I calculate mileage reimbursement?
Multiply the business miles by the rate. 1,250 business miles at the IRS rate of 76 cents is $950.00; driven before July 1, 2026, at 72.5 cents, it is $906.25. Parking fees and tolls for those trips can be added on top.
What are the HMRC mileage rates for 2026–27?
For cars and vans, 55p a mile for the first 10,000 business miles in the tax year and 25p after that, up from 45p for the first 10,000 miles in 2025–26. Motorcycles are 24p and bicycles 20p a mile. Passenger payments are 5p per passenger per mile.
How does the 10,000-mile threshold work?
It applies to all your business miles in the tax year, from 6 April to 5 April. At 2026–27 rates, 12,000 business miles are 10,000 × 55p + 2,000 × 25p = £6,000. If 9,000 miles were already claimed, a 2,000-mile trip is 1,000 at 55p and 1,000 at 25p: £800.
What if my employer pays less than the HMRC rate?
You can claim tax relief, called Mileage Allowance Relief, on the difference. On 12,000 business miles in 2026–27 the approved amount is £6,000; if your employer pays 45p a mile (£5,400), you can claim relief on the £600 shortfall. Payments above the approved amount are taxable.