Mileage Reimbursement Calculator

What is Mileage Reimbursement?

Mileage reimbursement is a tax deduction that allows you to deduct the cost of driving your personal vehicle for business, medical, or charitable purposes. The IRS sets standard mileage rates each year that represent the average cost of operating a vehicle, including gas, maintenance, insurance, and depreciation.

IRS Standard Mileage Rates by Year

Year	Business	Medical/Moving	Charity
2025	$0.700/mi	$0.210/mi	$0.140/mi
2024	$0.670/mi	$0.210/mi	$0.140/mi
2023	$0.655/mi	$0.220/mi	$0.140/mi
2022 (Jul-Dec)	$0.625/mi	$0.220/mi	$0.140/mi
2022 (Jan-Jun)	$0.585/mi	$0.180/mi	$0.140/mi
2021	$0.560/mi	$0.160/mi	$0.140/mi
2020	$0.575/mi	$0.170/mi	$0.140/mi

Business Mileage Deduction

You can deduct miles driven for business purposes, including:

• Traveling between your office and client/customer locations
• Driving to business meetings, conferences, or seminars
• Trips to the bank, post office, or supply store for business
• Traveling between two work locations

Note: Commuting from your home to your regular place of work is NOT deductible.

Medical Mileage Deduction

Miles driven for medical purposes can be deducted if they exceed 7.5% of your adjusted gross income (AGI). This includes driving to doctor appointments, hospital visits, pharmacy trips, and medical treatments.

Charity Mileage Deduction

The charity rate of $0.14/mile is set by Congress (not the IRS) and has remained unchanged since 1998. You can deduct miles driven while performing services for a qualified charitable organization.

Standard Mileage Rate vs. Actual Expense Method

The IRS allows two methods for calculating vehicle deductions:

• Standard Mileage Rate: Multiply miles driven by the IRS rate. Simpler, but you can't also deduct actual expenses.
• Actual Expense Method: Deduct all actual vehicle expenses (gas, oil, repairs, insurance, depreciation, lease payments, parking, tolls). Requires detailed record-keeping.

You must choose one method for each vehicle and generally stick with it. If you choose the standard mileage rate for a vehicle in its first year of use, you can switch to actual expenses in later years. However, if you choose actual expenses first, you must continue using that method.