What Is a Mileage Reimbursement Calculator and How Is It Calculated?
A mileage reimbursement calculator multiplies the distance driven for business, medical, moving, or charitable purposes by the per-mile (or per-kilometre) rate set by a tax authority — the IRS in the US, HMRC in the UK, or the CRA in Canada — to estimate what an employer owes an employee or what a taxpayer can deduct.
The formula is: Reimbursement = Distance Driven × Rate per Mile (or Km). Where a rate is tiered — the UK and Canada both step down to a lower rate after a set number of miles or kilometres in the tax year — the calculator splits the distance across both tiers and sums the two amounts, rather than applying a single flat rate to the whole trip.
According to the IRS, the 2026 standard mileage rate for business use of a vehicle is 72.5 cents per mile for miles driven from January 1 through June 30, rising to 76 cents per mile from July 1 through December 31, 2026 — a mid-year increase reflecting rising vehicle operating costs.
How to Use This Mileage Reimbursement Calculator
Select a country, enter the distance driven, and the reimbursement updates instantly. Here is what each field means:
- Country / Rate System: United States (IRS), United Kingdom (HMRC), or Canada (CRA) — each uses a different rate structure.
- Distance Driven: Total miles (US/UK) or kilometres (Canada) driven for the trip or period you are claiming.
- Purpose (US only): Business, medical/moving, or charitable driving — the IRS sets a different rate for each.
- 2026 Rate Period (US only): Which half of 2026 the miles were driven in, since the business and medical/moving rates both increased on July 1, 2026.
- Vehicle Type (UK only): Car/van, motorcycle, or bicycle — HMRC's Approved Mileage Allowance Payments rate differs by vehicle, and only the car/van rate steps down after 10,000 miles.
- Distance Already Claimed This Year: For UK cars/vans and Canada, this determines how much of the new distance falls into the lower-rate tier.
This calculator covers three countries so it works whether you are a US employee tracking an IRS-compliant mileage log, a UK contractor claiming HMRC's Approved Mileage Allowance Payments, or a Canadian employee using the CRA's automobile allowance rate — each with its own currency, unit of distance, and rate structure.
2026 Mileage Rates by Country
Rates and thresholds vary widely by country and purpose. The table below summarizes every rate this calculator uses for 2026.
| Country / Authority | Purpose / Vehicle | 2026 Rate |
|---|---|---|
| US — IRS | Business | 72.5¢/mi (Jan–Jun), 76¢/mi (Jul–Dec) |
| US — IRS | Medical / Moving | 20.5¢/mi (Jan–Jun), 23.5¢/mi (Jul–Dec) |
| US — IRS | Charitable / Volunteer | 14¢/mi (fixed by statute, all year) |
| UK — HMRC | Car / Van | 55p/mi first 10,000 mi, then 25p/mi |
| UK — HMRC | Motorcycle | 24p/mi flat |
| UK — HMRC | Bicycle | 20p/mi flat |
| Canada — CRA | Automobile | 73¢/km first 5,000 km, then 67¢/km |
Frequently Asked Questions
What is the 2026 IRS mileage reimbursement rate?
The 2026 IRS standard mileage rate for business use is 72.5 cents per mile for trips January 1 through June 30, and 76 cents per mile from July 1 through December 31. Medical and moving mileage is 20.5 cents per mile in the first half of 2026 and 23.5 cents per mile in the second half, while the charitable driving rate stays fixed at 14 cents per mile all year because it is set by statute, not IRS notice.
How accurate is this mileage reimbursement calculator?
This calculator uses the official 2026 IRS, HMRC, and CRA published rates, including the mid-year IRS rate change and the tiered thresholds HMRC and the CRA apply. It does not account for employer-specific reimbursement policies that pay less than the standard rate, tolls, parking, or state-specific rules — check your employer's policy or a tax professional for a paycheck-exact figure.
What is the difference between mileage reimbursement and a mileage deduction?
Mileage reimbursement is money an employer pays an employee for using a personal vehicle for work, typically tax-free up to the standard rate. A mileage deduction is what a self-employed person or unreimbursed employee subtracts from taxable income at tax time for the same business driving — both use the same IRS, HMRC, or CRA rate, just applied by a different party at a different point in the year.
Do I need to keep a mileage log to claim reimbursement?
Yes. The IRS, HMRC, and CRA all require a contemporaneous log showing the date, destination, business purpose, and distance of each trip to support a mileage claim. This calculator estimates the reimbursement amount once you know the total qualifying distance — it does not replace a trip-by-trip log.