What is the IRS mileage rate for 2026?

For business use, 72.5 cents per mile from 1 January to 30 June 2026, and 76 cents per mile from 1 July to 31 December 2026. Charity driving is 14 cents per mile.

What is the HMRC mileage rate for 2026?

From 6 April 2026, 55p per mile for the first 10,000 business miles in a car or van and 25p per mile after that. Motorcycles are 24p and bicycles 20p.

How do I calculate mileage reimbursement?

Multiply business miles by the rate for the period they were driven, then add the periods together.

Do I need a mileage log to claim?

Yes. Both the IRS and HMRC expect records of business journeys. Keep a log made at the time of each trip.

Is mileage reimbursement taxable?

Reimbursement at or below the official rate under an accountable plan is generally not taxable. Rules vary, so check IRS or HMRC guidance or a tax professional.

Mileage Reimbursement Calculator (2026) / CarO

Written by Muneeb Rana · Last updated 21 October 2026

Quick answer: A mileage reimbursement calculator multiplies business miles by the official rate. For 2026, the IRS business rate is 72.5 cents per mile for January to June and 76 cents from 1 July to 31 December. In the UK, HMRC's approved rate for cars is 55p per mile for the first 10,000 business miles from 6 April 2026, then 25p.

TL;DR

US 2026: 72.5¢/mile Jan-Jun, 76¢/mile Jul-Dec (business).
UK from 6 April 2026: 55p first 10,000 miles, 25p after.
Keep a mileage log to support any claim.

This mileage reimbursement calculator works out what you can claim or be reimbursed for business driving, using the official 2026 IRS and HMRC rates. Enter miles for each period and the tool applies the right rate, including the IRS mid-year change in 2026.

How to use the mileage reimbursement calculator

Choose country: United States (IRS) or United Kingdom (HMRC).
US: enter business miles driven 1 Jan-30 Jun and 1 Jul-31 Dec; add charity or medical miles if relevant.
UK: enter business miles for the tax year and vehicle type.
Read the total, and the rate applied to each portion.
Download the summary to keep with your mileage log.

How the mileage reimbursement calculator works

US business = miles_H1 * 0.725 + miles_H2 * 0.76
US charity  = miles * 0.14
US medical / military moving = miles_H1 * 0.205 + miles_H2 * 0.235
UK cars/vans (from 6 Apr 2026) = min(miles, 10000) * 0.55 + max(0, miles - 10000) * 0.25
UK motorcycles = miles * 0.24 ; bicycles = miles * 0.20 ; passenger = miles * 0.05

Rates from the IRS standard mileage rates page and Notice 2026-10, and GOV.UK's travel, mileage and fuel rates, checked 21 October 2026.

Worked example

A US freelancer drove 4,000 business miles January-June and 3,000 July-December: 4,000 × $0.725 = $2,900, plus 3,000 × $0.76 = $2,280, total $5,180. A UK employee driving 12,000 business miles in 2026/27: 10,000 × £0.55 + 2,000 × £0.25 = £6,000.

Reimbursement vs deduction

If your employer reimburses at or below the IRS rate under an accountable plan, it's generally not taxable income. Self-employed people can usually deduct business miles with the standard rate or actual expenses. UK employees paid less than the approved rate may be able to claim Mileage Allowance Relief on the difference. Check the official guidance or a tax professional; see the IRS mileage rate guide.

Records you need

Keep a log with date, destination, purpose and miles for every trip, made at the time; see the mileage log for taxes guide. Rideshare and delivery drivers should read Uber driver expenses.

Standard rate or actual costs?

The standard rate covers fuel, maintenance, depreciation and insurance in one figure. If your actual costs are much higher, the actual-expense method may give a bigger deduction, but you'll need every receipt. CarO's car expense tracker and the cost of car ownership calculator help you compare.

Download CarO free on the App Store or Google Play. Free with ads; optional in-app purchases.

Sources

IRS: Standard mileage rates: www.irs.gov (accessed 21 October 2026)
IRS Publication 463: Travel, Gift, and Car Expenses: www.irs.gov (accessed 21 October 2026)
GOV.UK: Travel, mileage and fuel rates and allowances: www.gov.uk (accessed 21 October 2026)
IRS Topic 510: Business use of car: www.irs.gov (accessed 21 October 2026)

Disclaimer: CarO and this website give general car-care information, not professional advice. Maintenance intervals and specifications vary by vehicle, so always follow your owner's manual and a qualified mechanic. Mileage and cost figures are estimates; check local tax rules before using any log for deductions.

Mileage Reimbursement Calculator