A worked example
Driving 250 business miles at the 2026 IRS rate of 72.5¢ per mile comes to a reimbursement of $181.25.
Frequently asked questions
What does the IRS standard mileage rate actually cover?
It's meant to approximate the full cost of operating a vehicle for business use — fuel, depreciation, maintenance, repairs, insurance, and registration all bundled into one per-mile figure, rather than requiring separate tracking of each expense category.
Can I use a different rate than the IRS figure?
Yes — many employers set their own reimbursement rate, which may be higher or lower than the IRS standard. Just note that if a business reimburses above the IRS rate, the excess is generally considered taxable income to the employee.
Does this rate apply to all types of driving?
No — the IRS sets separate rates for business, medical, moving (limited to certain groups), and charitable driving, and they're not all the same number. This calculator uses the 2026 business rate by default, but you can enter any rate that applies to your situation.
This calculator provides estimates for general informational purposes only and is not tax advice — confirm current rates and rules with the IRS or a tax professional.