FREE TOOL · IRS 2026 RATE · 4 COUNTRIES · NO EMAIL REQUIRED
Mileage reimbursement calculator. US, UK, Australia, Canada.
Calculate mileage reimbursement at current authoritative rates. The IRS 2026 standard mileage rate is $0.725/mile for business travel — up from $0.70 in 2025. Plus UK HMRC (£0.45/mile first 10,000, £0.25/mile thereafter), Australia ATO (88¢/km), and Canada CRA. Business, medical, charitable, and moving categories where applicable. No signup, no watermarks.
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Add your first trip above to start the log.
Rates used: US IRS 2026 business $0.725/mile · UK HMRC AMAP 45p/25p (car), 24p (motorcycle), 20p (bicycle) · AU ATO 2025–26 A$0.88/km (≤5,000 km/yr) · CA CRA 2025 CA$0.72/km (first 5,000 km), CA$0.66/km thereafter. CRA 2026 rates pending announcement. This calculator is for reference only — verify rates with your tax authority before filing.
Tracking mileage across countries manually?
REME automatically logs mileage from receipts and travel records submitted via WhatsApp — applying the right rate per jurisdiction (IRS, HMRC, ATO, CRA) without manual classification. Built for distributed teams operating across multiple countries.
2026 IRS standard mileage rates explained
For 2026, the IRS has set the standard mileage rate for business use at $0.725 per mile — a 2.5-cent increase from the $0.70 rate that applied in 2025. This is the rate employers can use to reimburse employees tax-free for business mileage on personally-owned vehicles. Reimbursement at or below this rate is excluded from the employee's taxable income; reimbursement above this rate is taxable.
The IRS publishes four standard rates each year:
The business rate is reset annually by the IRS based on a study of the fixed and variable costs of operating a vehicle. The charitable rate is set by statute (26 U.S.C. § 170(i)) and has been $0.14/mile since 1998.
For employers: reimbursement at exactly the IRS rate is the safe harbor. Reimbursement below means employees miss out on tax-free amounts. Reimbursement above the rate makes the excess taxable wages — triggering payroll taxes for both parties. The Custom Rate option in the calculator above shows the tax implications.
Standard mileage rate vs actual expense method
For US tax purposes, employees and self-employed individuals can use the standard mileage rate (a fixed per-mile rate covering all vehicle costs) or the actual expense method (deducting actual fuel, maintenance, insurance, depreciation apportioned by business use). Most employer reimbursement programs use the standard rate for simplicity.
Simple, fixed per-mile rate
How it works
Multiply business miles × $0.725/mile (2026). The rate covers all vehicle costs — fuel, depreciation, insurance, maintenance, repairs, registration.
When to use
You want simple administration. You drive a high-mileage vehicle. Your actual costs per mile are below the IRS rate.
Pros
- Simplest — just track mileage
- IRS-approved, no audit risk
- Works for any vehicle type
Cons
- Same rate regardless of vehicle cost
- Doesn't reflect higher luxury vehicle costs
- Must choose one method per vehicle
Variable, based on actual costs
How it works
Track all actual vehicle costs for the year — fuel, maintenance, insurance, depreciation, registration. Multiply by business use % from mileage log.
When to use
You drive an expensive-to-operate vehicle. Actual costs per mile exceed the IRS rate. You can track expenses meticulously.
Pros
- Reflects actual costs accurately
- Can yield significantly more for premium vehicles
- Useful for high-depreciation vehicles
Cons
- Requires detailed expense tracking all year
- Complex — receipts, logbook, depreciation schedule
- Switching methods has complex rules
Most employer reimbursement programs use the standard mileage rate for simplicity and consistency. Self-employed individuals with expensive vehicles often benefit from running both calculations and using whichever yields the larger deduction.
Mileage rates compared across countries
For distributed teams operating across multiple countries, mileage reimbursement gets complicated quickly. Each tax authority has its own rates, methods, and thresholds. Here's the comparison across major English-speaking jurisdictions:
For finance teams managing employees across multiple jurisdictions, applying the right rate to each trip becomes a meaningful manual task. REME automates this — every mileage submission gets the correct rate applied based on the trip's jurisdiction.
Mileage record-keeping — what each country requires
Tax authorities are strict on mileage substantiation. Vague entries get rejected during audit, even if the underlying business purpose was legitimate. Here's what each country requires:
IRS substantiation requirements
Per IRS Publication 463: contemporary record of mileage with date, business purpose, total miles, and starting/ending odometer readings or origin/destination. Records must be made at or near the time of the trip — not reconstructed weeks later. For employers using accountable plans, employees must submit records within 60 days of the expense.
HMRC mileage records
Per HMRC guidance: date of journey, starting and ending locations (not just total miles), purpose of journey, miles travelled. Records must be retained for at least 5 years from 31 January after the relevant tax year. HMRC scrutinizes the difference between business miles and ordinary commuting — which isn't reimbursable.
ATO logbook requirements
For cents-per-km method: estimate of business kilometres for the year (no logbook required, but supporting evidence helpful). For logbook method: 12-week logbook recording every business journey with date, odometer readings, kilometres, business purpose. Logbook valid for 5 years if usage stays consistent. Records retained 5 years.
CRA travel logs
Per CRA guidance: date of trip, destination, purpose of trip, kilometres driven. Records must distinguish between personal and business use. Recommended to log starting and ending odometer readings for each business trip. Retain records for at least 6 years from end of tax year.
Common audit findings across all four countries: vague trip purposes without naming the client, missing odometer readings, mixing personal and business trips, and reconstructed mileage logs. Use a contemporaneous tracking method — phone app, paper log, or expense tool — that captures records at or near the time of travel.
Mileage policies for remote and distributed teams
Distributed teams and remote-first organizations have specific mileage challenges that standard policies don't address. Here are the practical considerations:
Remote workers commuting to office
Generally, commuting between home and regular workplace isn't reimbursable in any jurisdiction. For remote-first companies: if the employee is required to attend, treat travel as reimbursable. If the employee chooses to go, treat as commuting (non-reimbursable). Document this distinction clearly in written policy.
Multi-country employee assignments
When an employee travels from one country to another for work, use the rate of the country where the travel occurs — not the employee's home country. A US-based employee driving in the UK uses HMRC rates. The calculator above's tabbed structure reflects this — pick the country where the driving happens.
Per diem mileage allowances
Flat monthly mileage allowances are generally treated as taxable income unless structured as an accountable plan with substantiation requirements. The simpler approach: reimburse at the standard rate for actual business miles with proper contemporaneous logging.
Reimbursement timing
All four countries require reimbursement within a reasonable time for the payment to be tax-free. The IRS uses 60 days as the substantiation deadline. Best practice: monthly reimbursement cycles. Avoid letting submissions sit unprocessed for more than 60 days.
Frequently asked questions
The IRS 2026 standard mileage rate for business travel is $0.725 per mile, effective January 1, 2026. This is up from $0.70/mile in 2025 — a 2.5-cent increase. For medical and moving expenses (military only), the 2026 rate is $0.21/mile. For charitable service mileage, the rate is $0.14/mile (set by Congress, hasn't changed since 1998). The IRS announces standard mileage rates annually, typically in late December for the following year.
Multiply business miles driven by the applicable standard rate. For 2026 US business travel: distance in miles × $0.725 = reimbursement amount. Example: 100 business miles × $0.725 = $72.50. The calculator above handles US, UK, Australia, and Canada — including step-down rates (UK first 10,000 miles, AU 5,000 km cap, Canada 5,000 km step-down). Multi-trip totals and custom rates are also supported.
For US employees: reimbursement at or below the IRS standard rate ($0.725/mile for 2026 business) is excluded from taxable income, provided your employer's plan satisfies IRS Accountable Plan requirements (substantiation within 60 days, return of any excess within 120 days). Reimbursement above the IRS rate is taxable as additional wages. UK, Australia, and Canada have similar tax-free thresholds at their respective standard rates.
Standard mileage rate: multiply business miles by the IRS rate ($0.725/mile for 2026). The rate covers all vehicle costs — fuel, depreciation, insurance, maintenance. Simple, no expense tracking required. Actual expense method: track all actual vehicle costs for the year, then multiply by business use percentage from your mileage log. More complex but can yield larger deductions for expensive-to-operate vehicles. Most employer reimbursement programs use the standard rate for simplicity.
US federal law has no general requirement, but reimbursements at or below the IRS rate are tax-free under Accountable Plan rules. State law matters: California (Labor Code §2802), Illinois (820 ILCS 115/9.5), Massachusetts, and effectively New York require reimbursement of necessary business expenses including mileage. UK, Australia, and Canada generally don't require employer mileage reimbursement, but tax-free thresholds at standard rates create strong incentive to reimburse at those rates.
Contemporary records are key — records made at or near the time of travel, not reconstructed weeks later. Per IRS Publication 463: date of trip, starting and ending odometer readings (or origin/destination), business purpose, total miles. UK, Australia, and Canada have similar requirements. Acceptable tools: phone GPS apps, paper logbook, or expense software. The key is contemporaneous capture — not reconstruction.
Generally no, in any of the four jurisdictions covered. Commuting between home and a regular workplace is personal expense — even if you're driving to work. Exceptions: travel between two work locations, travel from home to a temporary work location outside your tax home, and travel between work and a client location. For remote workers occasionally visiting an office: if travel is required by the employer, treat as business mileage; if the employee chooses to go, treat as commuting.
Three main considerations: (1) Commuting vs business mileage — required office visits are business mileage, optional visits are commuting. (2) Multi-state/country employees — for US employees in California, Illinois, or Massachusetts, employers must reimburse. For UK/AU/CA employees, country-specific standard rates apply to trips in those countries. (3) Home office trips to clients are generally reimbursable business mileage when home is the regular workplace for tax purposes.
Per IRS Publication 463: contemporaneous records with date of trip, business purpose, total miles, and starting/ending odometer readings (or origin/destination). For employees under an accountable plan, records must be submitted to the employer within 60 days. For self-employed individuals deducting on Schedule C, retain records for at least 3 years from the tax return filing date. Inadequate records: vague entries like "client visit" without naming the client, reconstructed logs, and estimates without supporting odometer data.
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See pricing →Manual mileage tracking across countries means missed reimbursements and compliance gaps.
Mileage logged automatically. Right rate, right country.
REME captures mileage from travel records submitted via WhatsApp — applying the correct rate based on the trip's jurisdiction (IRS, HMRC, ATO, CRA). Built for distributed teams managing 50–300+ employees across multiple countries. Backed by our 80% adoption guarantee.
80% adoption guarantee
If fewer than 80% of your employees are actively submitting expenses within 90 days, we extend your free period until they are. No conditions, no asterisks.